SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Applied Materials
AMAT 304.08+2.2%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Math Junkie who wrote (55091)11/5/2001 3:21:55 PM
From: Jerome  Read Replies (1) of 70976
 
Richard...>>>Another puzzle: E*Trade lists two different puts for many strike prices, with widely differing prices. For example, for Dec '01 420 puts they list SOYXD, with an ask of 2.95, and SXXXD, with an ask of 16.30. Do you know what the difference is?<<<<

Here is my interpretation...When you see a call or put with wildly different prices for the same strike...the lower priced option represents the current stock price and the much higher priced option represents the same strike pre split.

Example A LRCX March Expiration at the 20 strike may show two different options...one trading at 3 and one trading at 9, because this past year LRCX split 3 for one. (in this example the prices are not accurate...its an example)

Regards, Jerome
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext