CAWS - Wireless Cable (New and Improved) Message Board

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Technology Stocks : CAWS - Wireless Cable (New and Improved)

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To: .com who wrote (355)	11/19/1996 11:13:00 AM
From: Malcolm Boyd	of 5812

Hello fellow cawsoholics, Theres been a lot of postings about options in recent days and I have a number of reservations as to how level the playing field is regarding options. (BTW, I hold March calls and am long the stock). As I understand it, writers of calls and puts would in the main be financial institutions and brokerage houses - as they can afford the possible unlimited losses, unlike most individuals. In the case of CAWS, would the same writers of options not also include GKN? However, they are also the (primary/ only?)market makers of the stock. Is there not therefore a conflict of interest here? If I could write a call safe in the knowledge that I could "massage" the price to a safe price then why wouldn't I do it? Accordingly, are there any rules surrounding this or are we all taking an even bigger risk each time we buy options? In the eyes of the Option writers, am I the proverbial turkey looking forward to Thanksgiving? My suspicion was also raised when I heard that at least 90% of options expire worthless. Tread with care, MJ.

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