Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (34779)	2/6/1998 4:26:00 PM
From: Kenneth R Miller	Read Replies (1) \| Respond to of 58727

Donald, Right in line with your thoughts is a comment by Mr. Arms on CNBC today: Message 3362398

To: donald sew who wrote (34779)	2/6/1998 8:48:00 PM
From: Heg Heg	Read Replies (2) \| Respond to of 58727

Hi Donald, thanks for your updates. You mentioned recently that there might be an 'arbitrage situation effecting' expiry week. AFAIK arbitragers should have no particularly interest in where any stock or index expires. The idea of arbitraging is that if the Arb does his/her job properly their risk is zero no matter what the expiry price is. I have for some time collected open interest and related data on options to see if there is an effect on price -- alas, nothing (statistically) significant has turned up, leaving me to believe that most options are written by Arb's (and not naked). Since collecting and processing the data is a lot of work I have recently ceased collecting them for now for lack of further investigative ideas. I am still sitting on a huge pile of historical data though. Do you have an idea how this 'arbitrage situation' could effect prices? If you could explain this I might be able to check on my historical data whether I can find any effect. TIA Hý