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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: GRANOLA who wrote (57839)	8/12/1998 1:00:00 PM
From: jbn3	Respond to of 176387

DELL options, MMs actions Granola, No, I do not know that there is any MM collusion. However... it looks as if there is ~$250,000,000 which will effectively change hands on 21 August, in DELL options alone. That represents a lot of incentive to try to manipulate the price a bit. We all know that DELL historically moves up strongly into an earnings report, primarily because it has a proven history of beating the estimates. This time, several factors have combined to create some uncertainty and overall market weakness. IF the MMs can use some of these factors to help restrain DELL's movement for a while, as we approach options expiration, a lot of the time value evaporates. I don't think that they will be able to restrain the price indefinitely, and not at all if DELL announces great earnings, great prospects, and a split. But the longer they can hold it, the more time value evaporates, while call and put holders get worried and sell at reduced rates. I do not know this is happening, but the stakes are fairly large. regards, 3.