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To: Matteo who wrote (36931)1/21/2000 12:30:00 PM
From: taxman  Read Replies (1) | Respond to of 74651
 
"the MM want the options to expire worthless"

i've seen this statement many times and it one more of wall street myths that i disagree with.

for one we don't know what position market makers have--they can be long or they can be short and it can be in puts or it can be in calls.

in any event when a market maker has a substantial risk on his option position, he hedges it. he makes his living on the spread.

regards



To: Matteo who wrote (36931)1/21/2000 12:59:00 PM
From: brian z  Read Replies (2) | Respond to of 74651
 
<<Obviously the MM want the options to expire worthless>>

This is an excuse we hear all the time from some option players. But it is just not true. What options are you talking about, puts or calls? which MM? .....

Don't blame MM if you are not playing the game right.



To: Matteo who wrote (36931)1/21/2000 4:19:00 PM
From: John F. Dowd  Read Replies (1) | Respond to of 74651
 
M: How did the point of maximum pain theory work out? Were we above it or below? JFD