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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (14336)	7/7/1999 3:52:00 PM
From: Greg h2o	Respond to of 42804

lengthy, but accurate <VBG>

To: ahhaha who wrote (14336)	7/7/1999 5:43:00 PM
From: Bruce L	Read Replies (4) \| Respond to of 42804

Ahhaha: Re: <<You haven't made one supportable statement>> I've admired many of your posts (they are articulate and well-informed) so I don't really mean to get into a pissing contest. You had asked me "why" and "how." But I have the impression you asked while knowing in advance what your rejoinder would be. Did you really read my answer? Your entire post: Does it really say anything more than, "It is too dangerous for MMs to do anything more than let market forces of supply and demand play themselves out"? In general, I agree. But are you also saying that, "No MM would ever attempt to influence the market for "smaller cap NAZ" stocks"? What non-conclusionary facts does your post contain that supports this position? Let me ask you some specific questions that may help clarify at least what our respective positions are. l. First, and most important, are you claiming that, on options expiration day, that stocks do NOT tend to settle close to the nearest strike? That this is a popular myth? 2. Are you saying that MMs do not commonly write options, either covered or not, on the stocks that they follow? 3. Are you saying that traders for MMs in "smaller cap NAZ" stocks NEVER have the authority (as Greg says) to do anything more than attempt to capture the spread? That they do not have the authority to appreciably go long or short a stock for the profit of the inventory account? When I answered your questions, this is the scenario that I envisioned: Next week, on Friday, July 16th, a half hour before trading closes, MRVC is at 15 3/8; trading has been light and desultory; a trader for one of the MMS - who has sold call options on the stock, decides that he can DRIVE DOWN the stock to closer to 15 through the mechanism of posting short sales at or below the ask totaling maybe 1500 shares. Thereby, he hopes to avoid having his firm's shares called away by options holders who usually won't exercise "in the monies" 1/8th of a point or lower; further, that he probably can cover his shorted shares at the close for a profit. Are you saying that this never happens? That my belief that it does is a myth that "has no basis in reality"?