SI
SI
discoversearch

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.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (102457)4/5/2000 10:28:00 PM
From: chic_hearne  Respond to of 1577591
 
Re: There are roughly 77,000 call option contracts outstanding. The highest strike is 70. If the stock is above 70, all will be in the money, all the puts will be worthless. The calls will have to be sold. The 77,000 shares represent 7.7 million shares.

Joe,
Many of the deep in the money options will be exercised. Many of the 50's plus options may be bought back by the naked call writers.

There could be demand to provide shares, or there could be a lot of people looking to sell shares.

IE, depending on the price, it may be very hard to predict what will happen.

chic



To: Joe NYC who wrote (102457)4/6/2000 12:17:00 AM
From: Petz  Respond to of 1577591
 
Jozef, re:<There will be another challenge after the earnings - the option expiration day>

If many of the call options are deep in the money, they will be exercised, causing somewhat of a short-squeeze situation. Also, many of the higher strike prices were sold short by the retail customers, so the usual situation of the market makers holding the short position and the retail side holding the long position may not apply.

Petz


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News