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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Dr. Edwards who wrote (253)2/23/1997 9:47:00 AM
From: John M. Hammer   of 14162
 
I have seen this kind of price activity on expiration day a number of times now. Probably, the market makers and specialists do make a certain amount of effort to get some stocks to close just below certain strike prices. This is because most calls are written by professional traders, institutions, and the market makers / specialists themselves (at least, that is what I am told). So, they get to keep more money if the stock closes just below an important strike price on expiration day.

John
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