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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas George Warner who wrote (12424)	12/18/1997 6:51:00 PM
From: W. Luther	Read Replies (1) \| Respond to of 45548

I wouldn't exactly call it "manipulating the market", but their actions can distort the market in the short term and make a stock move(up or down) more than their fundamental prospects would warrant...as an example, say there's a lot of put buying on a stock...thus, it may be that the mm is short a ton of puts, so he'd have to short the underlying stock to balance his books...by doing so he'd force downward pressure on the stock price...a similar situation would occur if he wrote too many calls, ie, the mm would have to be going long the underlying...just check out put/call open interest on the neat, at-the-money strikes and you can figure what's likely to happen. Cheers, Wade