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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (10035)	11/19/1997 6:27:00 PM
From: tim york	Read Replies (3) \| Respond to of 94695

I have a general Options question, could anybody help me? for in the money call options, the options premium = Intrinsic value+ time value, where Intrinsic value = underlining stock price - strike price. On the date of options expiration, the options premium = intrinsic value. Let's say if a. XYZ stock is expected to go up on that day, b. there are large call open interests on XYZ stock. The large volume exercise of those in the money calls would put upward pressure on underling stock price, which in turn would also drive up the option premium because it equals to (stock price - strike price) on the date of expiration until the last min. of market open hours. Is my logic correct? My question is would it be possible for options premium on the date of expiration to be less than (stock price - strike price) because MM are taking advantage of the volatility and in the last day ? Any prompt comments would be really appreciated. Thanks in advance for your help.