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Technology Stocks : Dell Technologies Inc.
DELL 130.49+0.4%3:59 PM EST

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To: BGR who wrote (112031)3/24/1999 11:44:00 PM
From: PAL  Read Replies (1) of 176387
 
A:

You are very perceptive. I suppose at some instance there is an opportunity for the professionals for an arbitrage play should a MM be slow in changing the B/A on a volatile stock.

The deeper in the money the option is, the less time premium is assessed because the option buyer already risks a chunk of money for the intrinsic premium. Compare these two of Dell puts. The expirations nare 1 year apart, yet the time premium is just 1 5/8.

Exp date strike price last bid ask open interest symbol

P JAN00 70.0 28.250 31.500 32.500 70 LDEMN

P JAN01 70.0 34.625 33.125 34.125 395 ZDEMN

Best to you. Glad you are still around.

Paul
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