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To: Chuzzlewit who wrote (72947)	10/19/1998 3:36:00 PM
From: Eddie Kim	Read Replies (2) \| Respond to of 176387

Like i said, since no one cares to explain it to you..you assume you are right. Perhaps, the we should chance the angle of the argument. Why don't you prove that MMs can't manipulate stocks. Finally, for me at least, seeing is believing. I have followed this market for some time and I have seen over and over again stocks closing just below the option strike price with the largest open interest. i asked you is this coincidence. I don't think so. You talk alot about science and the need for objective experimentation, yet even in SCIENCE this is not always the case. For example what is Gravity? Can any Physics Professor define gravity? Sure, we know how to calculate the force of gravity which is based on the mass of the two objects and their distance, yet what is gravity? Science accepts that gravity exists on the sole fact that consistent observation leads them to think this way. Perhaps someday we will understand what gravity is like how we understand the dual nature of light. Until this time...no matter what your academic books tell you about competitive market places and their need to eventually converge to no profit...my experience and historic data tells me other wise. Furthermore, i have talked to numerous Economic Professors who DO NOT agree with the "characteristics" of a competitive market, or at least their application to the Stock market.

To: Chuzzlewit who wrote (72947)	10/19/1998 3:45:00 PM
From: Eddie Kim	Read Replies (1) \| Respond to of 176387

All I asked is for somebody to provide the motive in the form of demonstrating how it could be done profitably. Nobody has been able to demonstrate this to me. I just don't understand why you keep writing this. If we can agree that al least the majority of options expire worthless then someone is making money. Furthmore if a large firm buy calls and sell puts..THEn it is VERY profitable if the STOCK goes up. remember the market MM is not in a vacuum..if he starts to buy heavily so will others....thus pushing the stock either further. he can then sell his calls and buy back his puts...and slowly sell of his shares. Seems very profitable to me! Example: I've been watching this stock for a while. Trading at ~$13, but it appeared that someone wanted it below $12.5 (option strike price). I noticed than someone (it could have been several people) would buy 5,000 shares, which did not really move the ask up any, and then sell 1000 share blocks one at a time which would drive the bid down 1/4. I noticed this pattern over and over until the person(s) quit due to very strong support at $13. Once the person stopped doing this the stock popped back up. This is only a theory of mine, but I think I'm more right than wrong.