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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: bronco2 who wrote (21886)	3/19/1998 5:13:00 PM
From: Tricky Ricky	Read Replies (1) \| Respond to of 36349

I have no proof and am not sure I believe it myself although each month it sure appears that there is some manipulation during options week. The premise of my post was to ASSUME these things were true to reach the conclusion, not that they are true. The MMs do control the price of the stock by setting the bid and ask. They usually do this based on supply and demand and the number of shares they are holding. If they have a heavy open option interest it may be in their best interest to hold the price at a point where the most options expire worthless. Since they know before the rest of us which way the pressure of the market is pushing the price they can react ahead of time to control the price. Remember, with no news the about the only thing that effects the stock (other than overall market or segment trends) is the psychology of the investor. If the MM manipulates the price correctly he can effect the psychology of investors to deter buying or selling. This is just my 2 cents on this. May even be way off base but is the best explanation of this I have seen so far - again, assuming they are manipulating the price. TR

To: bronco2 who wrote (21886)	3/19/1998 5:19:00 PM
From: Barry Hall	Respond to of 36349

According to this it doesn't happen but the effect is real anyway! techstocks.com techstocks.com

To: bronco2 who wrote (21886)	3/19/1998 5:29:00 PM
From: Jay Mowery	Read Replies (4) \| Respond to of 36349

Eric, None taken! If you look at the stocks that are "Zooming up" and check how much of the stock is controlled by the funds. The more the better for holding a stock. Then check the next strike price above where the stock is sitting. You'll usually see a big chunk of open interest on that strike price of the call options. If you really believe none of the big players can control a stock price for a short period. That's cool, but there really ain't a tooth fairy either. I don't think anybody intends to imply, this is the only reason the price of PAIR is where it's at! It MAY BE a contributing factor! I'm holdin April call options right noe including XON! Check the Open Interest on the March 65's! Wanna bet it closes tomorroww right in that area? A coincidence? I think not! XON ain't a podunk sized company, last time I ckecked! Can they control it for a few days? My GUESS? Damn right they can. I wouldn't underestimate the power these guys hold. If they don't try betting against them. I bet they win! PAIR may or may not move after Friday if it doesn't then there is more than options exp. holding it back. However, we can't confirm that till after they clear the options! It's like any other confirmation tool people use! Nothing is for sure! They're only yard sticks buddy! That's how I use them! There ain't no sure things! Only possible explainations and tools! It's just a tool to me! If PAIR goes up Tuesday you can figure it's being held back was options related!(It does APPEAR this is a possible explaination at this point!) We'll get CONFIRMATION of this Monday or Tuesday even possible later next week! Hope this helps!! Your buddy, Jay