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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: HD who wrote (9790)	3/4/1998 11:29:00 AM
From: Robert Graham	Respond to of 14631

I have not yet found such a book. The ramblings of Jim Cramer at his the.street web site does provide some view into this process. I have recently purchased a book that covers options from the perspective of the MMon the floor. This book should prove to be interesting once I receive it in the mail about one week from now. I will let you know if this book covers the topic of options expiration well, as it should. I think you may be able to find some description in the option "bible" by McMillan "Options as a Strategic Investment", but I do not remember a good lucid description, which is disappointing in a book like this. The few statements I have sound on expiration usually comes down to something like this at best: "The market maker purchases the option and then hedges his position". I have found this only in one source. I think this was one of Jim Cramer's articles. Even the second book by McMillan "MicMillan on Options" does not go into any detail on this even though this book specifically adresses many of the mechanisms behind the real-life option trading process and its impact on both the stock and option markets, which includes for instance program trading and how the MM hedges their position when there is a sudden one-sided demand for a particular option. This is very odd indeed. But this book does cover some of the "games" that are played by big money in the market as far as options are concerned. So this second book is a nice supplementary source on options and how they can be used in real market situations even though I would consider this book incomplete. Bob Graham Bob Graham