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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (17472)	5/13/1998 11:43:00 AM
From: Carl R.	Read Replies (1) \| Respond to of 25960

Zeev, the ability of options expiration to influence the price of the stock depends on the relative volume of the outstanding options and the stock. If there aren't many options outstanding relative to the underlying volume of the stock, obviously there won't be much expiration affect. Some think that this effect is due to some kind of market maker conspiracy, but actually it is due to the mathematically explainable effect of people closing out their profitable positions, combined with a sort of self-fulfilling prophecy aspect among traders. I have written extensively on this topic before, and I can look up the references to it, if anyone is interested. The posts about options are under the ASND thread. Carl