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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 170.90-1.3%3:59 PM EST
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To: puzzlecraft who wrote (92172)1/20/2001 12:07:03 PM
From: Kayaker  Read Replies (1) of 152472
 
9 out of 10 options expire worthless.

"Many people have heard and even repeated the statement that '90 percent of all options expire worthless'. It's unclear where that got started -- some say from a study done back in the 1940s regarding the illiquid over-the-counter market at the time. This statement is patent nonsense with respect to listed options....I have had several hundred thousand contracts that were held until expiration. I have no way of knowing how many were exercised or assigned and how many expired worthless, but my general feeling is that the count is about 50-50. That is, about half were in-the-money at expiration, and half were not. I do know, with a certainty born of 20 years of experience, that nowhere near 90 percent expired worthless."

--MacMillan on Options, Lawrence G. McMillan, pages 16-17.
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