Identix (IDNX) Message Board

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Technology Stocks : Identix (IDNX)

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To: Wendell Holmes who wrote (3772)	10/8/1997 2:13:00 PM
From: Rob C.	of 26039

Wendell, Let's do the math..... Days To Exp: 10 Open Interest: 1294 Volume: 0 IDX OCT 10 CALL Open Interest: 505 Volume: 0 IDX OCT 12 1/2 CALL Let's say that the average price paid for these options were .75 cents per contract....it means that the options sellers would collect $75.00 times 1799 contracts currently outstanding which would add up to $134,925. If the stock were to close higher than the strike price they would be obliged to deliver stock at $10, since they have the ability to manipulate the price down to 10 and have this money in their pocket, why should they give away cheap stock??? It is free money. Also consider that everytime someone buys calls the specialist must make the market and would short the stock or cover the stock in his inventory in order to cover this position. He is their to make his spread. He will be able to contol the price because IDX in very thinly traded. This is my understanding.Buy a book on options and you will be able to see this much more clearly. If you want a better explaination, e-mail me and I will give you my phone number, so we can dicuss. Regards, Rob

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