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To: fut_trade who wrote (4295)12/12/1997 4:59:00 PM
From: IKM  Read Replies (2) | Respond to of 27307
 
Can't. I just assume that most contracts get opened when there is a strong sentiment shift up for calls and down for puts. When that happens, the specialist has to take the opposite position, but takes the spread. Shift the other way, offload inventory which will drive down the number of open contracts and take the spread.

Mind you, I'm just reasoning this out. Anybody know any better, please enlighten us.



To: fut_trade who wrote (4295)12/12/1997 5:06:00 PM
From: Bill Wexler  Read Replies (1) | Respond to of 27307
 
In a certain sense - it doesn't matter. Remeber there has to be a buyer for every seller. Someone promises to deliver the stock, and someone else promises to take delivery.

The vast majority of options speculation by small investors is call buying.



To: fut_trade who wrote (4295)12/12/1997 5:51:00 PM
From: Mama Bear  Read Replies (1) | Respond to of 27307
 
>>>One thing -- how do you distinguish between buy to open and sell to open?<<<

You don't. BTW I don't subscribe to the options manipulation/conspiracy theories, as I understand arbitrage.

Barb!