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

To: PDG who wrote (16977)	8/20/1998 10:52:00 AM
From: Jon Tara	Read Replies (1) \| Respond to of 213182

PDG, sometimes a stock will get "pinned" to the nearest strike price (in this case, 40) the last couple of days going into expiration. This is more likely to happen if there is a large open interest in the options. The reason for this is NOT manipulation, but as a natural side-effect of option expiration. There are two factors: 1. Arbitrage that can be done when/if the options trade at a discount to their intrinsic value near expiration. If there are call options trading at a discount, the calls can be bought, immediately exercised, and the stock sold for a small profit. (Normally this is done only by brokers and others with very small transaction costs.) The selling of the stock puts downward pressure on the price. Conversely, if there were a large open intersdt in puts, the opposite could occur, and the stock price could get a boost. 2. As the options approach expiration, if the stock is near a strike price, the potential profit in a newly-established option position in the expiring options from any move in the stock approaches infinity. Greed and fear move in to correct this. :)

To: PDG who wrote (16977)	8/20/1998 11:14:00 AM
From: WebDrone	Respond to of 213182

PDG- you are JOKING, right? In my view of the world, Dell goes way up because their EARNINGS REPORT came out, and they kicked ass, like Asia was no problem at all for them. Not because Mike gets on TV. In my view of the world, the stock market is on edge because Asia is a problem, US markets are near an all-time high, and the news for Europe is that Asia will hurt them, too. In my view of the world, Market Makers will manipulate AAPL to $40 (the nearest options strike price) by Friday, so they can maximize their profits (including the price of the manipulation). Now, Steve Jobs is giving a keynote at SEYBOLD. Sept. 1, 9:00 (SF time) seyboldseminars.com Do you have a position is AAPL? Web