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To: charlie who wrote (5146)	12/29/1997 1:27:00 PM
From: IKM	Read Replies (2) \| Respond to of 27307

No expert here. I'll hazard a guess that the opposite side of the transaction is more likely someone with a covered call position. What really makes me think someone, a big player someone, is locking in the gain is that why in the world would someone open a position 29 points in the money? There's little of the leverage and all the decaying time risk of options with such a transaction.

To: charlie who wrote (5146)	12/29/1997 1:47:00 PM
From: Mama Bear	Respond to of 27307

>>>If the market maker knows that the only purpose of these sales is to lock in the gain, why would he/she be holding these large number of calls?<<< Options are handled by a specialist a la NYSE, not a market maker system. The option specialist has to keep an orderly market in order to scalp the spread off of each trade. This means they have to buy or sell however many contracts they are bidding or offering. Don't worry about them losing money, they are the "house". they take a % off the top. The fellow who figured out the mathmatecal formula that they use to figure the prices won a Nobel prize for mathematics for the work, so they have the absolute best on their side. Barb!