SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Ascend Communications (ASND)
ASND 212.50+1.5%Dec 24 12:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Carl R. who wrote (8286)8/10/1997 4:47:00 PM
From: vegetarian   of 61433
 
Carl while we are at the subject I have another question.
After expiration day we see a lot of options expire worthless.
Now if we assume that a majority of option writers are arbs and their positions are covered, that would mean after expiration they would want to get rid of the stock positions.
So if the open interest on calls at expiration was higher than puts that would result in net selling of stock because the call writers have gotten rid of their stock and conversely for puts.
Should one expect the stock to go down some after expiration if the call open interest was high and go up if the put interest was high? does it amount to a tradable difference?
Thanks for your comments.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext