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To: Bipin Prasad who wrote (49273)	10/14/1999 12:28:00 PM
From: Carl R.	Read Replies (1) \| Respond to of 53903

The mystery is how many are open sold puts, and how many are open purchased puts. If you assume that they are all purchased protective puts, then the idea is that as the option writer who sold them hedged by shorting the stock. Then as the option holders close the puts the option writer closes the short position, resulting in buying of the stock. A significant number of puts will simply be exercised, of course. In this case the hedged stock is transferred to the option writer, closing his short position. The resulting impact on the stock is nil. Also, some of the puts are sold naked puts, and the effect of closing them will be the reverse. Based on prior experience this 17,000 share differential will result in extra stock purchases of about 1/3 of the apparent position, or about 600,000 shares. If the volume is low, then this will have a definite impact, but on a 10 million share day it won't be enough to move the stock up to 70. Carl