Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: J Krnjeu who wrote (29606)	8/19/1999 10:35:00 AM
From: donkeyman	Respond to of 41369

Free Internet depends on advertising. Does advertising on the Internet have a major advantage over advertising on television, radio, magazines and newspapers, etc? After all, when you advertise on free Internet companies like FreeServe (FREE), X-stream network (XSNI) and Cybersurf (CY), etc. 'YOU ARE JUST 1 CLICK AWAY FROM A TRANSACTION'. That's a major advantage. I understand Internet advertising in the USA last year was valued at $1.7 billion.?? What are some Free Internet companies in the USA.????

To: J Krnjeu who wrote (29606)	8/19/1999 11:16:00 AM
From: Steve Robinett	Read Replies (2) \| Respond to of 41369

JK Here's the current open interest of AOL August puts and calls near the money. The greatest number of options expire worthless with a close below 100 and above 90. A close Friday at precisely 95, causes the greatest number of puts and calls to expire worthless. Though the so-called maxpain theory of options expiring to cause the greatest number of worthless options has problems, it it nonetheless interesting. Strike.............Call O.I......................Put O.I.............Total O.I. 90..................15,481......................16,388.............31,869 95..................13,368......................13,161.............26,529 100................28,825......................16,481.............45,296 105................22,841........................7,823.............30,604 Best, --Steve

To: J Krnjeu who wrote (29606)	8/19/1999 5:21:00 PM
From: Dr. David Gleitman	Read Replies (1) \| Respond to of 41369

To everyone on the thread: I was was curious about options expiration and its potential effect on prices during options expiration. I myself have sold a number of covered calls for the August 105 and the August 100. What I am wondering about is why my selling of covered calls should have an effect on the stock price. Personally, I am just doing it to obtain some quick additional income trying to sell covered calls towards the higher end, out of the money (as in the case of 105, and, unfortunately, 100). What I failed to understand is why this sale should effect stock prices. By selling the covered call and receiving immediate additional money. If the price of the stock reaches the strike price or slightly above it, the odds are that the option will be exercised and I will end up losing the stock at the strike price. Now in the case where the value of the stock/call is approaching the strike price (forgetting about the time factor component) and I feel that I want to withdraw my participation in this option, all I have to do is to buy back my option, which I understand can also drive up the price of the option but not the stock. Maybe this has more to do with puts. Right now I'm a bit confused. To summarize my question, does the selling of covered calls and even the buying of covered calls have an effect on price of the stock during options expiration? And if so, how does it work. Inquiring minds want to know. My thanks in advance. David. Postscript: yes, I ready have McMillan's book on my desk (where it has accumulated a nice coating of dust, I might add). I just looking for a quick answer. My thanks again to whoever responds.