<<How do MM's benefit from pushing prices down at option
expiration? Are they really large holders of options and don't want to
sell their stock? Do they push prices Up in a down market, or do they
always try to hold prices down?>>
VanSwol,
It is believed MM's significantly hold big portion of options and they
will make the maximum from options expiration, similar to the game
played on ex-dividend date. In May's options, the Call 27.5 left
after expiration with significant numbers, hence it was the major
target to minimize those payouts.
Well, today's market will be determined by:
- Fed's meeting to decide whether they are to raise the interest rates;
- Dell quarterly report due today.
I don't think Fed will raise the rate due to:
- Strong U.S. dollar, particularly to Japanese Yen;
- South Asia's chaos probably result in U.S. economic slowdown;
- No significant evidence to demostrate the inflation was on the rise
enough to stimulate the interest rate hike;
I think Dell's quarterly reports will be good enough to bring tech
rally after disappointing reports from HWP. Besides, the money flown
into Mutual Funds has been increased in April to present, in part, was
from foreign countries due to strong U.S. currency. The money will
be injected into the market after the Fed's announcement of remaining
the same rates.
Phil |
