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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: billy d who wrote (2049)	3/19/1999 6:58:00 PM
From: David Howe	Read Replies (1) \| Respond to of 10280

They might have a reason to (I'm not saying they do <g>) work the price to their advantage. The open interest in the 130s might be substantially different from the open interest in the 125s. I believe that at times there is a significant difference to the Market Maker what price the stock closes at on expiration day. Dave

To: billy d who wrote (2049)	3/20/1999 5:19:00 PM
From: M. Ramle	Read Replies (1) \| Respond to of 10280

Billy d: In theory "yes", but you also have to take into consideration the Open Interest on the Put side. By closing the stock right at $129 7/8 (which was higher than the closing Ask Price), he was able to wipe out the entire hefty premiums of all the $130, $135 & $140's Calls. As for the $125 Calls, his trick was to open the stock well below that strike price and scare the hell out of these holders in the morning, thus forcing them to sell at the opening at the cheapest. Another observation on the closing price of $129 7/8 was that by doing so, the MM has forced the $130 Put buyers to put the stock to him at $130 which will only increase his inventory (possibly before another upleg starts !!!!). Having said that, I would NOT be surprised to see the shares open on Monday slightly on the weak side, which I am hoping it does in order to initiate additional position on the April 130's Puts. Good Luck. Mazen