Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.44

+4.5%

11:05 AM EST

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To: Navneet Thapar who wrote (5173)	11/13/1996 4:35:00 PM
From: Ibexx	of 186894

Navneet, A simplistic version works like this: At today's close, the open interest of Intel's November 120 call stood at 10044 (ref. Lombard option chains) with the last trade at $1 1/4. Two days ago, this option was traded at $5 (when the underlying stock was traded at $125). From the way it looks, I am certain the MMs will artificially set the stock price at around $120 so that the 120 calls would expire worthless. Now, lets do a simple math exercise: $5x10044x100=$5.022 MM Which means the institutions who sold the calls could stand to pocket up to--I said "up to"--over $5 MM....and there are also November 122.5 calls which will expire worthless... In addition to the option related activities, Intel's announcements re. building new plants certainly didn't help--the Street likes chicken laying eggs, but hates to spend $$$ buying chicken feed. Ibexx

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