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To: Jake's mom who wrote (14848)	7/16/1998 11:46:00 AM
From: Patrick Slevin	Respond to of 17305

I would like to get into it in a more detailed fashion but I'm pressed for time. Here is part of it.... Message 5200377 The basic idea is that when most of the open interest in calls is ine the money there is a bias to the upside because the market is prone to being "gunned" by arbs, amongst others, to drive it higher late in the day; provided momentum is right at the time. This can be facilitated in many ways. Buying baskets of highly capitalized stocks which represent a greater "weight" in the OEX or SPX, for example. Exercising the calls after the close, the market tends to gap lower the next day (on a large exercise) but the arbs et al would normally "cover" the exiting stock positions buy a late hour purchase of offsetting puts....cheaply, because of premium erosion during the run-up. That's a pretty broad brush explanation, but I hope it was somewhat of interest.