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Non-Tech : Amati investors
AMTX 1.600-1.8%Jan 9 3:59 PM EST
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To: SPEEDRACER who wrote (27204)10/16/1997 1:07:00 AM
From: pat mudge   of 31386
 
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<<< if I were a MM who sold them at 1.125 with the stock lower than now, I would be anxious to buy them back for an eigth and also sell my stock hedge out at a profit....>>>

I agree with you, but why would an MM buy back the 20s unless he was afraid the stock would go over 20 by Friday? Wouldn't he normally just let them run out the clock? If he's buying them back, perhaps he knows something. And what about all those 17.5s? Open interest is 4,273. Won't the MMs have to eat them if the stock closes at these levels on Friday? Why haven't they been bought back?

According to my DLJ system, there are 11,409 contracts open in October options. That's 1.14M shares that will be exercised if the stock goes over 20. Since I've never watched anything like this before, what's likely to happen? How will the MMs protect themselves?

Thanks in advance.

Pat

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