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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (11224)	1/14/1998 10:11:00 PM
From: Mark Adams	Read Replies (1) \| Respond to of 12298

The open interest for Jan puts on APM is so high that I would say 1/2 the short positions are related to delta hedges by the market makers. As the stock price declines, the delta for any strike increases (the put is further in the money), and the hedge requires selling short more shares to neutralize the risk. Unwinding this should prove a valuable lesson in the impact of options on the market.

To: Greg Jung who wrote (11224)	1/14/1998 11:13:00 PM
From: Jonathan Bird	Respond to of 12298

Greg, I see that the open intrest for the 15 strike is twice as much. Why will we not be pulled more toward that then toward 12.5? To far? And when all this is over(friday) can we procede to tank again? Jon Bird