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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 (5458)	1/1/1998 5:48:00 PM
From: santhosh mohan	Read Replies (2) of 27307

Sankar, just to make sure we are reading from the same playbook: << this demand could explain why the price of April 40 calls were lower as compared to that of April 65 calls (they have the same time premium as they have the same time to maturity).>> If Option Premium = Intrinsic value (max(S-X,0)for calls) + time value, are you saying that the April 40 and April 65 calls have the same time to maturity and therefore the same time premiums? You must be thinking of something else when you are referring to time premium. Can you clarify? << But, at least as of Friday, this was not happening since (as I had noted in an earlier post), some of the call option values were rising despite a fall in the stock price.>> Your point about perceived volatility changing is interesting. But are the trades (option and stock) synchronized? You may be looking at option trades prior to YHOO dipping in price.

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