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Strategies & Market Trends : Continuing the IFMX discussion and more...

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To: Melissa McAuliffe who wrote ()	10/7/1997 8:47:00 AM
From: GuyNixon	of 206

Sorry to post this question here, because it has nothing to do with IFMX. But since this is one board I have followed. I guess I just have to dump it here... :> A personal observation As of Oct6 1997. Airtouch Closed at 37 15/16 1999 Jan 25 (Vrhae) closed at Bid 11 1/8 Ask 11 5/8 Does this mean someone can buy these contracts on the same day, exercised them the very same day and get a discount to the market price, dispite the daily low was 37 1/2? (Strike Price+Premium=Real purchase Price)(25+11 5/8=36 5/8) The discount is $37 15/16-$36 5/8=$1.31 Can someone please explain this phenomenon? Why would anyone sell calls lower than the market price? To lock in the gain? If there is no premium on Leaps, does it implied a lack of interest due to some reason? Guy

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