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Technology Stocks : Intel Corporation (INTC)
INTC 34.36-1.1%3:58 PM EST

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To: Jim McMannis who wrote (90640)10/19/1999 8:46:00 PM
From: Road Walker  Read Replies (2) of 186894
 
Jim, re: "about 90% of options expire worthless"

True. The reason is that 40% of options are way out of the money puts bought for portfolio insurance. Probably half of the other options are spreads of some kind, so 1/2 expire worthless while the other half end in the money. Of the in the money options, bought naked for investments, I would guess that most end up in the money. Out of the money options, most probably expire that way.

"90% of all options expire worthless" is one of those popular statements that is true but very misleading.

John

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