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Strategies & Market Trends : Three Amigos Stock Thread

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To: Ken W who wrote (18838)2/16/2000 9:45:00 PM
From: Sal D  Read Replies (2) of 29382
 
Ken,
<It is my understanding that 85 to 90% of options expire worthless.>

I don't think this is true. The CBOE publishes an annual statistics booklet.I don't think the stats include options in market maker accounts or index options and they don't indicate whether money was made or lost. The last report I saw was very old but it indicated that approximately 35% of options expire worthless.

I know you short a stock from time to time, you may want to look into buying puts sometimes instead. I believe you might find a better return with less downside if it turns the wrong way on you. Check it out. Good Luck.

Joe
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