Options for Newbies -(Help Me Obi-Wan-Kenobe) Message Board

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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)

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To: jebj who wrote (1473)	6/27/1999 7:17:00 AM
From: RealTime	of 2241

HELP PLEASE! If anyone on this board can help me with a question, it would be great. I'm trying to get a grasp on this option thing, some of it doesn't make sense. I recently bought into a company ARQL. At the time of my purchase the stocks last trade was $4 1/4. The call was an OCT 5 and cost me $1 3/16. The ask was 1 1/4, but I put in a limit, and the MM met me. Here is what I cannot understand. Since my purchase of these contracts, the stock has risen to $4 9/16 as of close Friday. However, the options contracts I bought have fallen by 30%!!!! The last ask for the very same contract 4 days after I bought it was 13/16. If I knew this would have happened, I would have been looking at puts for my calls? Would any of you guru's care to take a stab at explaining this deal. I feel like I'm taking the brunt of some MM manipulation? Isn't there regulations/guildlines regarding how an option should be priced with respect to the underlying stock price? Thanks in advance, Tom

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