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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 239.19+2.1%Jan 23 3:59 PM EST
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To: Torty who wrote (37308)1/28/1999 12:40:00 AM
From: Don Westermeyer  Read Replies (1) of 164684
 
Could you explain how the the stock price might be influenced by open option interest?

The option houses buy and sell stock to hedge their options bets if someone buys a bunch of calls, the house typically may buy some stock ( would you sell YHOO or EBAY options without a hedge :) ).

One theory is that come expiration day, the stock will close at a price that screws over the most option buyers and maximizes the profit for the option house.
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