Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

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Nov 6 4:00 PM EST

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To: Rational who wrote (5195)	12/31/1997 8:40:00 AM
From: santhosh mohan	Read Replies (1) of 27307

<<I noticed that April 60 Calls traded for $15, and April 40 Calls for $29. There is a difference of (60+15)-(40+29) = $6. If at all, April 60 calls should be cheaper because a price of $60 for YHOO is less likely than a price of $40; everything else is inherently the same for both contracts because it is the same underlying stock. >> Sankar, I am still trying to figure out this statement. The time/speculative value is highest at or near the money. Deep-in-the money have little of this. Also, nobody has discussed that the call buyers especially of deep-in-the money options may be short-sellers trying to hedge. In fact, this may be a more logical hedge than the same calls being written by long positions.

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