Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: kash johal who wrote (98329)	3/13/2000 8:36:00 PM
From: Petz	Read Replies (1) of 1571376

kash, re:<I think the call prices have gotten extremely high on this puppy.> Only because the put prices are even more outrageously high. I just did a check to determine the relative price of a theoretical at the money March call, based on the NYSE close of 51 5/16 and found that it had a price of 1.895. The theoretical price of a March at the money put at 51 5/16 strike price is 2.153. Normally the calls should have a higher premium than the puts due to interest rate considerations. I believe this indicates that more than the usual number of people are actually SHORT the 50 and 55 calls, so there may be no pressure by the market makers. EDIT: Also, open interest in the 45 calls is pretty small, so if there's pressure on the stock, it might stop at 50. Petz

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