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Technology Stocks : Ampex Corp: Digital Storage
AMPX 7.887+0.7%Dec 31 3:59 PM EST

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To: GDC41 who wrote (2518)4/9/1997 9:39:00 PM
From: HPilot   of 3256
 
Out of the money calls are calls whose strike price is above the present price. If the stock stay's under the strike price they expire worthless if they go over then even if you don't trade you can excersise the option on the Saturday after expiration.

So out of the money calls are more riskey but because they are cheaper, they are more profitable if the stock goes over the strike price. So a surge in out of the money calls means that investor's are expecting the price of the stock to go over the strike price! Very bullish!
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