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Strategies & Market Trends : Tech Stock Options

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To: Jerry Olson who wrote (36846)3/17/1998 4:17:00 PM
From: Rubble  Read Replies (1) of 58727
 
I'm amazed nobody tried to take advantage of the spread on ABF. Toward the close, the ABF March 40's were ask 2 5/16, while ABF stock was bid 42 1/2. Just by buying the calls, and immediately shorting the stock, you could have exercised the options and made 3/16. I'll admit it takes a while to get options orders through on the PHX, but nobody seemed to even make an attempt. I suspect the marketmakers are artificially keeping the options price down because they're short.
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