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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: TimeToMakeTheInvs who wrote (4460)	3/22/1999 6:42:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 6021

TTMTI, lots of problems with that scenario. For example, if it a widely traded stock, like NETA, there is no guarantee about picking up the stops (after all, there are lots of other market makers and money managers around). Secondly, one must presume that the volume of stock sold to push the price of the stock down would exactly equal the quantity of stock that must be repurchased to push it back to its initial point. Now this is the kind of theory that sounds great over a drink, but when you try to take it apart for thorough analysis you find it has too many holes. Same goes for the maximum pain point. The reason is that options are derivative securities that are frequently written as part of a total hedged position, and options are often repurchased prior to expiration which causes them to disappear from view. The fact that the "maximum pain point" is within a few points of the stock at the time of expiration is really not very noteworthy, and requires no conspiracy to explain it. TTFN, CTC