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To: Ben Antanaitis who wrote (10093)	7/12/1998 2:06:00 PM
From: PblcSrvnt	Respond to of 164684

Ben, It seems to me that Pmax would trend toward the price of the stock and not vice versa. I know nothing about this, and I'm sure this concept has been worked and reworked by the best of them--yourself included, but here are my thoughts: 1. Option purchases, sales, and conversions(assignments) are continually happening; 2. Those options purchased, sold each day probably "build a somewhat equally weighted zone" around the price of the stock on a day to day basis, thus creating a "tendency" to move the overall Pmax toward the price of the stock; 3. As the price of the stock moves, those deep in/out of the money options are either exercised(repurchased/sold) thus locking in profits and losses; this having the effect of removing the "ends" of the option trail and further causing Pmax to converge with the price. 4. This goes on each day until the last day when Pmax coincides exactly with the price as every option is liquidated by the end of the day. Is this true? It seems intuitively correct, because Monday morning there is no "pain" in the options that expired Friday. So, intuitively it seems self-fulfilling. Would appreciate you pointing out the gross errors in my logic here. Thanks, Lee