One thing I always hear is how options market-makers are afraid of being picked off by inside information. But isn't it usually the laws against insider trading that bust market-makers?


Meaning, any piece of information becomes a fact slowly. Company X is thinking of buying a smaller company in another geographic region. Company X is looking at Companies Y and Z. Company X is in talks with Company Y. Company Y is receptive to Price N, etc.


And any piece of information normally spreads gradually from person to person. Jack has a zit. Jack has a rash. Cindy says Jack dated a girl with Herpes. Liz, Jack's neighbor, whom nobody knows, saw Jack buying herpes cream at the store. Sally sees other girls avoiding Jack, and wonders if they know something she doesn't, etc., pretty soon jack can't get a date in this state.


Meaning, if people were allowed to trade on inside information, so stock prices moved gradually, market-makers wouldn't wake up in the morning to find their stock had jumped 40 points, and their life is over! I hate the SEC, and this Reg FD only makes it worse!


Any agreeers, disagreers?


eLROY