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Biotech / Medical : PLC Systems -- Ignore unavailable to you. Want to Upgrade?

To: ElGator who wrote (859)	5/7/1998 12:21:00 AM
From: Richard James	Respond to of 1202

Thanks Gator. Richar James

To: ElGator who wrote (859)	5/7/1998 9:21:00 AM
From: GRC	Read Replies (1) \| Respond to of 1202

Regarding mm's manipulating the price because of options: The info I have (as to the number of written puts and calls) shows that the total value of may options for plc would be lowest if the price of plc was 15 on the expiration date. there are more puts at 15 and above than calls at below 15. Thus, for every $1 increase in price to 15, the total value of puts decreases by more than the value of the calls decreases. Conversely, driving the price to 12.5 would decrease the value of the calls, but not by as much as the puts value is increased. We don't know how many options were written by the mm's, so its hard to say how the price would affect them. Also, there are 5 times as many shares traded each day as there are outstanding may 12.5 calls. Thus, a $1 swing in the option price (excluding the premium) equates to a $5.00 value swing in shares traded (ignoring the many more untraded shares). That seems like a terrible risk for the mm's. My guess is the market simply values PLC where it is (ftr - I am long and hold calls that will likely expire worthless, and recently closed a put position). GRC