SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Eddie Kim who wrote (73420)10/21/1998 9:48:00 AM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
Ediie, for once I agree exactly with what you are saying. So to bring the discussion full circle, the claim has been made that Market Makers manipulate the price of the stock at options expiration so that the maximal number of options expire worthless. We now agree that is a fiction because MMs would have no incentive to do that given that their position is neutral.

But now, lets turn to big players. How do they manipulate the price of a stock so as to maximize the value of their position? I contend that since there are roughly equal numbers of puts and calls at each strike price this is an improbable expectation because in total, the big players also have a neutral position.

TTFN,
CTC