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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Thomas W. Fox who wrote (10902)	8/19/1998 3:44:00 PM
From: Ben Antanaitis	Respond to of 64865

Thomas, The day the SUNW options had their big run, the total volume actually traded was just over 2x the initial number that was reported when the rumor hit... so there is some possibility that the original purchaser got in and got out during the same trading session.... leaving a large number of 'little sheep' who chased the big green balloon holding a number of calls. As I recall, the word in the CBOE pits was that the particular speculator had sold a very large position in SUNW stock at the same time he bought the calls, as a proxy for owning the stock, but having the cash available to invest elsewhere (Dell?). By now, I would guess that this gentleman has 'rolled-out' his calls into Sept or beyond. But, that possibility not withstanding, you are correct in speculating that the MM or some hedge fund manager who may have sold a bunch of naked calls might want to keep the price below $50 on Friday, in fact the Max-Pain point is $47.5.... which would take all the $50's out worthless. Ben A.