Rich, the answer is no. If the stock were to close below 25 today, while the calls at 25 are wiped out, the cumulative total of puts are much
greater. So you don't reduce $1 payout in calls if it cost you $2
increased payout in puts.
If the market could take the stock to a price to wipe out maximum
options, the price would be exactly 25. There would only be
836 cumulative total calls (20 and 22.5's), and 8660 cumulative
total puts (27.5, 30, 32.5, 35).
Note: Numbers are from the CBOE this AM, so varies from yours.
The number of contracts today are not nearly as high as they were
earlier in the year. At that time, it was not unusual to have 20,000
contracts at just one strike price. Today, the biggest one is 5810
contracts of Nov 30 calls. Don't know if these numbers are big
enough to affect the stock action.
Patrick |
