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

To: jbn3 who wrote (40990)	5/8/1998 12:18:00 PM
From: Ben Antanaitis	Respond to of 176387

jbn3, I do not think the pros would use 1->3, not enough assurance of having an effect or being legal. But 4 was something that the articles in theStreet.com mentioned, among other methods. I don't have the article here in front of me, so I cannot quote them this minute. Also, they don't have to move the stock price all the way down to the Max-Pain point to cut down on their exposure, there is a steep slope to the curve so a little downmove goes a long way. They know the numbers and either there are lots of shares that are going to be called away OR there are lots of shares that are going to need to be bought to cover naked calls. If it's the former, then there might not be upside pressure, if the latter then there will be, but once the 'new' owner has the shares, will they hold them or dump them for a quick profit? You know the old rule of thumb, if a stock runs up on expiry day, it typically goes down the next week, and vice versa. And you are right DELL has massive numbers of shares out there and may be one of the stocks where this theory doesn't apply.... this month. Ben A.