Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.26

-0.7%

Feb 5 3:59 PM EST

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To: Xpiderman who wrote (5180)	11/13/1996 6:55:00 PM
From: FAHD	of 186894

Re: Why not 115-114? Don't forget about the puts at 120 and 115. They want to pocket those too. They have had plenty of time to balance the 115 calls. Look at the call and put volume together. It would break their backs to pay the 120 puts or 120 calls; why do that when you can have it close at 120; pay nothing; sell stock you bought last month or two years ago at a significant profit to keep selling pressure on the stock and hold the price down. This way the institution makes money all the way around the table. If you think this is bullshi*; look at last month's expiration after earnings. Price had jumped to 114. All the money was in 105 puts, 110 puts, 110 calls, and 115 calls. Where did it close on October's option expiration date (two-three days later); at 110 on the button. What happened the following Monday, selling pressure disappeared and the stock went up rather rapidly. Remember when B2B came out and it went to 125, volume of puts at 120 and 115 increase, and calls at 125 and 130 increase. THis is the very short run. They aren't going to adjust for this they will just peg the closing price where they want it; this way those obligations are worthless, even they don't have the time to make adjustments all they can do is directly affect the value of the underlying security. Why should they loose if they don't have to. And which way they go depends on the put and call volumes and direction of any recent runup; simple math will tell what price they should close at to maximize stock sale profits and profits from options writing. They have done the same thing to those poor souls who loaded up on MU calls right before B2B, real cheap/big payoff at 32.50 and 35.00 they wont see a dime. On the other side, this might be the ideal time to buy the call options that they will have time to adjust for like 32.5 and 35.00 of MU (example) for Dec/Jan etc... During options expiration week look for a hard reversal of what ever direction the stock was rapidly going the week or two before expiration. MY OPINION.... Mr. Institution sells stock for a profit at these levels; and pockets all those option dollars. What a way to win. So next month, at option expiration time look for a close at 130 or 135.

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