Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.12

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10:08 AM EST

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To: jack c rains who wrote (8773)	1/18/1997 8:54:00 PM
From: Madpinto	of 186894

I assume you refer to my post when you wrote, "For instance, one poster has given a dialog of what happens on options expiration day with the MMs buying stock or selling it to cover those option holders who are getting out of their option positions on expiration day - like that is the only day that this will happen. People, option holders buy and sell every day that the market is open and do you see the same thing happening on those days that happens on options expiration day? I'm afraid not." The difference between expiration and any other day is that on expiration all the options will be stock or they will be worthless. The MMs need to hedge 100 shs for every contract they buy or sell on expiration. On a normal day, they hedge a percentage of the option contract. In addition, you assume every MM has a short option position. This is simply not true. I traded options on the CBOE for eight years, although not for the last two years. My positions on expiration were long premium more often than short premium. Feel free to contact the SEC, but I know from first hand experience you are mistaken about MMs manipulating the stocks on expiration. Mike.

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