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Strategies & Market Trends : Wings-FPT

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To: Louis V. Lambrecht who wrote (57)8/17/2000 2:08:10 PM
From: OX  Read Replies (2) of 124
 
Too many assumptions as "most writers are professionals" or "most options expire worthless" or "most index
options traders are professionals" are untrue.


I guess it depends on what you mean by "professionals".
but i have to think that most of the volume of index options and options written, are professionals (regardless of who "professionals" defines). who else has the funds to do so in size?

"most options expire worthless"

the problem I find w/ this "myth" is that it's nearly impossible to quantify this, accounting for all the varying transactions during the life of an option contract that can be bot and sold many times over is virtually impossible. I mean, if the exchanges can't even keep track of OI realtime, how can anyone say definitively one way or the other?! :-)

the CBOE quote of 30% (or whatever number) is merely a count at expiration. who knows? some ppl who buy options (as a hedge for example) may want options to expire. others who sell may want them to expire too. and so on.
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