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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Maui Jim who wrote (3203)	3/19/1998 5:23:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

Ok folks, here's my theory for tomorrow's option expiration. Please shoot holes in it if you want. The following March options are in the money. Calls Strike Open Interest Today's Volume 17.5 108 0 ------------------ Total 108 Puts Strike Open Interest Today's Volume 27.5 4 0 25.0 32 0 22.5 110 0 20.0 602 5 ------------------ Total 748 As of the close today, there were a total of 108 calls and 748 puts in the money and these must be exercised or sold tomorrow if they are still in the money. Either way, and excluding the five March 20 puts that traded today, this will result in a net buy imbalance of 64,000 shares of stock (640 contracts). Given the average daily volume of about 2 million shares, I don't think this is enough volume to move the stock significantly but it's better than a sell imbalance and should create demand for the stock tomorrow. Given the large open interest in the March 20 put, I think it is more likely that the stock will move higher tomorrow than lower. The only question is how much. Dan