Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (18106)	3/15/1999 10:26:00 PM
From: taxman	Read Replies (2) \| Respond to of 74651

"The guys who are short calls [that are in the money] have to go out and start buying stock to cover," this the usual wall street garbage. for every short call there is someone on the other side that is long. at expiration the long will exercise and buy 100 shares at the strike price and the short will deliver and go short 100 shares at the strike price. whether the short investor covers by buying the shares is an independent decision. same for the long as to whether he holds or sells the shares he purchases by exercise of the contract. my conclusion is that option expiration will have no effect on the price of stocks. regards