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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: broken_cookie who wrote (47830)	7/15/1998 10:16:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

The logic is to look at where the calls and puts are. Almost all calls at this point are in the money with few puts (ITM). So the liklihood is for arbs and whoever to "gun" the market in the late innings of the day and exercise the calls after the close. A large exercise sees a gap down the next morning. Believe it or not I first saw a description of the technique written by Hank Camp several years ago and "how" to do it. Although I did not read it until around 1993, it was sketchily published in Barron's around 1990 and I believe it was attributed to Camp. Anyway, it takes big bucks to pull it off so it's one one of those "Don't try this at home, kids" deals. But if you can see it happening it's possible to pick up a meal or two off it. Usually it's trademark is a rising market after 3, 3:10 ET.