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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (89221)	2/5/2001 5:38:55 PM
From: Knighty Tin	Respond to of 132070

ild, 4000 contracts only represents 400,000 shares on a stock that traded nearly 11 million today, so I don't think a short would have depressed the shares. Though they were down. The specialist or market makers will usually never see a trade that size without seeing both sides. In other words, the deal is done by the upstairs traders at the big brokerage firms and the specialist, market maker simply allows it to happen at the price he likes. The upstairs trader will first chuck as many as he can to other institutions or customers and then put up the rest for his own account. He may short stock against them or he may sell another option on the same stock. Most try to use a layup sale like this to put on conversions or reverse conversions. So, he probably would have shorted stock and shorted puts to turn his long calls into a reverse conversion, which would have counterbalanced any impact.