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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (8910)	11/21/1997 10:13:00 PM
From: Haim R. Branisteanu	Respond to of 18056

Bonnie - they must BUY or SELL period before the close. That's why it is called "imbalace" The specialists must balace the "books" Usualy the market move oposite to the close of an expiration the next morning. (Monday) Haim

To: Bonnie Bear who wrote (8910)	11/22/1997 8:58:00 AM
From: robnhood	Respond to of 18056

Bonnie,,,they have been making imbalances known for some time ,,,this was introduced in order to stop the wild market movements on close,that ocurred before they introduced them,,,these wild movements began with the large acceptance of index futures and options about 10 or 12 years ago.Since the values of all strikes and futures are calculated to the closing prices,,the hedged positions have to unwind at the last sale,,,making the imbalances known before hand , does in fact bring in the other side and cushion the effect of hundreds of thousands of share orders which must be executed on the bell...I do believe that they also unwind some things at the open on the same day,,,again with Must Be Filled/MBF orders , entered before the opening.... since the settlement prices of the derivatives are based on the opening or closing sales of the underlying stocks,, prices become irrelavant.... rrman