Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: t2 who wrote (82532)	6/20/2002 7:36:33 PM
From: mishedlo	Read Replies (1) of 99280

Not sure where it closed but I believe I saw 28.95 print intraday. Then we had the ORCL "bounce" that probably got QQQ up to about 29.20 or so AH. As for why the plunge, once pain levels are broken (in expiry week) any subsequent breaks of "options support" (strikes where significant numbers of put options are held) will cause delta hedging. Right now you can see some lines forming, like INTC at 20. Relatively large numbers of puts there (and of a recent nature) so they will try and defend that level. If it goes, the put sellers have no choice other than to hedge short, which of course sends the stock lower. This week we might be seeing a combination of delta hedging, fund outflows, and investor panic all at the same time. Not very pretty. M

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