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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Ibexx who wrote (8432)1/15/1997 1:52:00 PM
From: Wayners   of 186894
 
Ibexx,

<<With the huge open positions of Intel calls (too numerous to list; look up lombard.com, click on quote and then option), the Marker Makers/institutions (who wrote the calls) stand to gain BIG TIME by depressing the stock price, thus rendering many calls expire WORTHLESS.>>

I agree that market makers and institutions write a lot of calls and this is one reason to manipulate the stock price. When options are exercised, doesn't this process circumvent the market makers, so they miss out on an opportunity to make the "spread". The market makers would prefer that all buys and sells go through them. Am I right or am I wrong? I also think that you have to look at the open interest on puts too. Maybe there is more open interest on the puts making it better to keep the stock price higher than the strike price.

Wayne
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