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To: santhosh mohan who wrote (5366)	12/31/1997 1:50:00 PM
From: Rational	Read Replies (1) \| Respond to of 27307

Santosh: Sure the buyer's motive may be to hedge or speculate. What I am saying is that call writers may be trying to give a good deal by lowering the call option price (premium), around a given strike, so that the hedger is tempted to buy while writer expects to make a killing by manipulating the stock price around that strike. [The writer may even be simply expecting the price to fall.] I hope you have seen the other post that makes my argument for why writers may tempt buyers to a narrow range of strike prices (say, 40-45). We have to see if volumes are surging for other strikes before any definitive conclusion. Furthermore, these arguments are useful only if the writer is more informed/powerful than the option buyers. Sankar