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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Steeny who wrote (23010)	6/18/1999 10:45:00 AM
From: Steve Robinett	Read Replies (2) \| Respond to of 41369

Steeny, You say, There's a lot of open interest at 105. Not the max-pain theory again. I did check the open interest last night and the max put & call open interest is now at 110. It seems to me the max-pain people are looking at the situation through the wrong end of the telescope. Option volume and open interest are almost always greatest at the money, especially with high volatility stocks like AOL. Premium capture strategies. In other words, the stock moves up or down and option activity follows the money. Consequently, on options expiration, when specialists (AOL) or mm(naz-stocks) are trying to do their job of keeping an orderly market in the face of extra volume, there is an extra amount of options activity at the money and, by the end of the day, the highest open interest is at the money, a sort of self-fulfilling prophesy. Best, --Steve