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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Stephen M. DeMoss who wrote (28504)	10/5/1999 10:22:00 PM
From: Benkea	Respond to of 99985

Well, I hate to toot my own horn (yeah right - hehe), but Greenie did just what I thought he would. No way the guy was going to tank the market which another rate cut would have accomplished. No way he was going to do nothing and let the crazies out of their straight jackets. Nah, better to leave the rate masterbation up to Wall Street for at least another month.

To: Stephen M. DeMoss who wrote (28504)	10/5/1999 11:13:00 PM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 99985

I wonder how much of the call buying is by MM's hedging their shorts... remember they have to be the seller of last resort when nobody else wants to sell. Just a thought. An option MM I talked to at the expo said that a good deal of his volume was institutional hedging (as well as his buying stock was hedging short option positions). Matt

To: Stephen M. DeMoss who wrote (28504)	10/5/1999 11:15:00 PM
From: John T.	Respond to of 99985

Stephen, the options MMs will make money either way. They constantly strive to be Delta Neutral, i.e., they create riskless hedges by buying or selling the underlying security or other options. The options MMs constantly adjust their portfolios to maintain this hedge.