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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: gene_the_mm who wrote (205)	7/29/2000 11:26:25 PM
From: jjs_ynot	Respond to of 1426

Gene, At expiration, there are market forces as well as market maker forces that tend to move stock prices toward option strike prices. Market makers in the underlying and the specialists in the options are often subsidiaries of the same parent firm. Also, if an option specialist tries to balance his books as time decays near expiration as well as large commercials, such as hedge funds; the price will tend to be driven to a strike price. The price in general will also tend to be driven toward the parity point (sometimes called the Max-Pain point). Regards, Dave