Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 322.51

+6.1%

Feb 6 9:30 AM EST

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To: marc henschke who wrote (7992)	9/17/1997 1:12:00 AM
From: MARK MEANDRO	of 70976

It is a very good theory. The theory goes like this. MM,specialist sell most of the options. Puts AND calls. There is a price called the "push point" where they "try" to get the stock to in order to make the most money on the Puts and calls they have sold. When a stock is going to split, as has been mentioned, there is alot of presure for the stock to go up and alot of people buy calls. The MM usually are the ones who sell these calls. If they cant sell enough puts to balance there calls they will start to buy the stock to cover the calls they write. As the option expiration date occurs they no longer need the stock to cover the calls they have written so they dump the stock buy back the writes and the stock dumps on the expiration day or the day after. Lets see what happens to the stock on Friday. On CNBC they said Friday could see the first Billion trade day bec it is "triple witch". 3 type of options expire on Friday. I am out for now. If AMAT does go back under 95 Friday Ill jump back in. AMAT is a good company. But with a PE in the 50s I think it is a little risky. Anyone want togo to Semiwest? Email me.

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