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Biotech / Medical : Vivus: into single digits -- Ignore unavailable to you. Want to Upgrade?

To: VLAD who wrote (720)	7/17/1998 11:03:00 PM
From: Bill Fischofer	Read Replies (2) \| Respond to of 1016

Options 101 If you view today's action as manipulation you'll never understand options. What we saw today is called "pinning the strike" and the mechanism that accomplishes this is called options arbitrage. VVUS was not singled out and there is nothing sinister at work here. This phenomenon happens to the vast majority of stocks on options expiration. It is, in fact, the way options work. The vast majority of options expire worthless. That's how options writers make their money--like any insurance business they rely on being able to collect regular premium income which in aggregate is far more than the occasional payouts required.