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Non-Tech : Amati investors

AMTX 1.600

-1.8%

Jan 9 9:30 AM EST

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To: pat mudge who wrote (27206)	10/16/1997 9:01:00 AM
From: SPEEDRACER	of 31386

Pat, Keep in mind that options MM usually know much less than you think. I know, I used to be one!! We just trade the #'s and sell high volatility and try to buy low volatility and maintain a somewhat neutral pos with limited risk. Depending on the individuals tolerance for risk, anything can happen in a case like this. Here are some possiblilities...... If public is on balance long the 17.5's and they will exercise them, no effect. If they will have to sell them the MM's will buy the calls and sell the stock to hedge them. The 20's have no effect this far out of the money, but as they get closer tp 20 and through 20, someone becomes real short , and someone else becomes real long/. Then the same thing happens as in the 17.5 example. Whoever has the most risk tolerance will win and let his position ride. I personally have always been one to want to close out all the option for 1/16 or 1/8 I can. I do not want to work hard everyday and make $ to let a bad risky position cost me one or two months work on a "bad day with a risky position that I could have closed. Hope that adds some light. Best wishes SPEEDY============================================================

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