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

To: Chuzzlewit who wrote (72635)	10/16/1998 3:02:00 PM
From: Dell-icious	Read Replies (2) \| Respond to of 176387

Chuzz, Well it isn't exactly clear why stock prices gravitate towards strike prices; whether it is manipulation or just due to the hedging that goes on against the options, but there is some solid evidence to support this theory. Here are DELL's closing prices for the past few months on options expiration day: March: 62 7/16 (strike price for max pain was 62 1/2) April: 67 1/2 (67 1/2) June: 84 3/4 (85) September: 57 7/8 (57 1/2) This didn't hold of course in May and August, due to huge earnings run ups and typically DELL tends to report in the week of options expiration. Though even then, in May, DELL closed at 90 (the highest available options strike). Also in July it didn't work due to the run up before the share holder meeting which was on options expiration day. I think the chances are very high that DELL will close at 57 1/2 today or within 1/4 of it. DELL also tends to run up the week after options expiration. Barring a "Black Monday" next week, I expect DELL to see the 60s again. Dell-icious