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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Kerry Phineas who wrote (1879)	10/24/1997 8:25:00 PM
From: Bilow	Read Replies (2) \| Respond to of 6180

TXN has a very active options market. Take a look at those volumes, both calls and puts. It's pretty big compared to the stock volume. I suppose that could be the reason for the order imbalance. If it moves too much, the option market maker ends up unhedged. (Assuming the MM is a net writer, and I bet he is short a lot more options than he is long.) In other words, the delta of the options positions he has written changes when the stock goes up or down, and thus he has to go into the stock market to keep himself hedged. Just my unprofessional guess. Any comments? Did a secret analyst put out a sell signal? -- Carl