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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (21642)	10/15/1998 10:55:00 AM
From: Jay8088	Read Replies (1) \| Respond to of 164684

One possible explanation. Lots of big money were attracted by very fat premium on AMZN puts. So they wrote large number of October puts and shorted AMZN stocks to hedge them. Now October puts are expiring and they have to unwind those short position on AMZN stocks. They are covering them driving AMZN stock higher. After this expiration, the same people may try once again - write Nov puts and short available AMZN stocks. If institutional holders and insiders decide to lighten up, there is a potential for a sharp downturn.