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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)
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To: jficquette who wrote (2216)7/18/2004 2:42:38 PM
From: jt101  Read Replies (1) of 2241
 
In addition to what Dave has rightly said, I think in options, for the sake of easy analysis, assume 50% of the contracts are calls and 50% of the contracts are puts. So at expiry, at least 50% bound to expire worthless.

In addition, in options, not only the stock should move in your direction, but it should also move in your direction within the given time period. This might make another 20-30% of the contracts expire worthless. In total this comes to about 70-80%??

These contracts may be part of some hedging strategy and it is difficult to ascertain the correct scenario because of this.

These are just broad ideas, I am also not too sure about the 80% statistics you are referring to. I hope this helps. just my 2 cents...
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