Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (10494)	11/27/1997 10:05:00 AM
From: Haim R. Branisteanu	Read Replies (2) of 94695

Bill the stock market is a probability game. Therefore by writing an option, if you are wrong, at least the premium decrease makes your loss less severe. It does not happen all the time as options are not perfectly priced and the "market anticipation" is priced into every option, on top of B&S formula. This factor can be added or substracted from hte option theoretical value, and usualy markets know better than B&S formula. As to ORCL specifics will see Monday. Haim

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