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

To: Mark Adams who wrote (11225)	1/14/1998 11:19:00 PM
From: Jonathan Bird	Read Replies (3) \| Respond to of 12298

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. Mark, If the "they" have to short more shares to neutralize risk then how are they able to prop the price up? Are the market makers the same as the "arbitrators" Greg refered to? If not, are they having to fight each other to get the price where they want it, one selling short, and the other buying to bring it to "maximum pain"? Both you guys are long right? Are you gonna bail on Friday? If not, why not? Jon Bird