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GS Options - Arthur

 
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uncle_vito
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PostPosted: Thu Mar 15, 2007 4:48 pm    Post subject: GS Options - Arthur Reply with quote

I own some March 200 Puts on Goldman Sachs. The open interest for these
options seem to be hovering around a strike price of 200. There are about
20,000 open interest on the March 200 Puts and 20,000 open interest on the
March 200 calls.

Today, the price of GS stock is almost exactly $200.

The suspicion is that for the next two days before expiration, the stock
price will hover around $200. This is because it will prevent the folks
holding the Mar 200 calls and puts from making any money.

Any truth to this? Like the Max Pain theory. Can the stock get manipulated
like this or am I dreaming? And if so, how does it get manipulated. Market
Makers?

Thanks

Vito
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arthur
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PostPosted: Fri Mar 16, 2007 4:08 am    Post subject: Re: GS Options - Arthur Reply with quote

IMO, the Last price is easily bent a few if ATM. A thin traded might
also have a larger bent Last price.

I really think the US SEC needs some ruling to stop the Close from
determining the ITM and OTM price. But government is not run by the
best of breed.

a

On Thu, 15 Mar 2007 04:48:07 -0700, "uncle_vito"
<uncle_vito2002@yahoo.com> wrote:

Quote:
I own some March 200 Puts on Goldman Sachs. The open interest for these
options seem to be hovering around a strike price of 200. There are about
20,000 open interest on the March 200 Puts and 20,000 open interest on the
March 200 calls.

Today, the price of GS stock is almost exactly $200.

The suspicion is that for the next two days before expiration, the stock
price will hover around $200. This is because it will prevent the folks
holding the Mar 200 calls and puts from making any money.

Any truth to this? Like the Max Pain theory. Can the stock get manipulated
like this or am I dreaming? And if so, how does it get manipulated. Market
Makers?

Thanks

Vito
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