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Strategies & Market Trends : From the Trading Desk

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To: The Perfect Hedge who wrote (2299)1/16/1998 10:05:00 PM
From: Mark Nelson  Read Replies (1) of 4969
 
Glen,

You asked:
"Do you think mm's and specialists hold stocks
back near options expiration so as not to pay up?"

My understanding is that option specialists hedge their positions when taking the other side of an option transaction. I am guessing that this hedge keeps their position in the money in most circumstances.

BTW there is a thread for options which might interest you:

exchange2000.com

Further to your question, I would think that the option specialists don't have much pull with the makers of the underlying market. Just a guess though.

Interested in how they hedge their positions? Me too.

Mark
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