Vivus: into single digits Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Vivus: into single digits

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: VLAD who wrote (720)	7/17/1998 11:03:00 PM
From: Bill Fischofer	Read Replies (2) of 1016

Options 101 If you view today's action as manipulation you'll never understand options. What we saw today is called "pinning the strike" and the mechanism that accomplishes this is called options arbitrage. VVUS was not singled out and there is nothing sinister at work here. This phenomenon happens to the vast majority of stocks on options expiration. It is, in fact, the way options work. The vast majority of options expire worthless. That's how options writers make their money--like any insurance business they rely on being able to collect regular premium income which in aggregate is far more than the occasional payouts required.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next