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.

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

To: M. Ramle who wrote (2296)	4/14/1999 1:06:00 AM
From: quidditch	Read Replies (1) \| Respond to of 10280

<Analyzing and extrapolating the Open Interest in the most active Strike Prices ($120; $125 & $130), my take is that there were too many Call Options purchased by short-term traders betting on the recent FDA's approval to push the price higher, which only happened very briefly pushing the price to an all-time high of $140 7/8. I presume that the MM's inventory became too low to deliver these shares (if exercised) and the easy way out for the MM is to use his available inventory to push the price down and trigger some Sell-Stops, while at the same time, diminishing the heck out of the Call premiums.> Glad you surfaced to put me out of my (TA-less depth) misery. But, a question: Once the probablilities that these calls would be exercised began to diminish seriously--i.e. the half-hearted action last week and then this week, why the need for this gambit (which, if it fails, exacerbates the MMs position). Are you saying that it is the MMs who sold naked calls that created their dilemma? Regards. Liacos_samui