Compaq Message Board - Msg: 3475843

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Technology Stocks : Compaq

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To: John Koligman who wrote (17409)	2/19/1998 2:19:00 PM
From: MIKenn	Read Replies (5) of 97611

Suggestions that "market makers" are manipulating the price of CPQ to effect certain option prices are pure BUNK. With 15 million shares trading daily, more than $1/2 billion in value is being exchanged. Yet, open interest of 36,000 contracts for 35 calls only represents the right to buy 3.6 million shares. Furthermore, its distinctly probable that many sellers of calls (the smart ones) also have an offsetting position in other contracts to limit their exposure. Concerted selling of 15 million shares over an extended period of time, representing billions of dollars in order to preserve a few million dollars is absurd and ridiculous. Compaq is traded on NYSE. I don't think this exchange even has market makers. The ONLY reason that Compaq is trading at 35-1/2 today is that all the sellers and all the buyers agree that this is a fair price based upon all of the information that is available to the public today. If the buyers and sellers agree on a price of 40 (or 50, or higher) in the next month or so, then MAYBE I'll recover all the money I lost on January 60 calls. If you have any new information for the public to digest that will help lift this pathetic price (now falling to 35-1/4) then please spill it! KQB

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