Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 227.35

+0.3%

Dec 19 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mike M who wrote (6491)	6/17/1998 10:30:00 PM
From: Jan Crawley	Read Replies (3) of 164684

<<Imagine buying a June 45 last week for 3 dollars, it's worth 34 now. I believe that most of the option holders will NOT exercise which will add to the derivative pressure over the next 2 days >> Really interesting....but why won't people exercise the call options...It would be difficult to let a $34 option expire worthless wouldn't it? Mike, I am sure Tradegod's response would be more insightful and complete, my simple explanation is: If the option holder of the Jun 45 call has a $31 ($34 less $3) profit per share, that's $3,100 per contract; most(almost without exception) will decide not to excise(take assignment) and just ask the broker(house) to close the option and put the $3,100 into their account directly. Some may decide to close the option during Friday (or tomorrow) to secure the premium(profit). As you know that the amount of premium correlates with Amzn's price movements, there is little time value left. Exercise (assignment) means to purchase the stock at $45. Then try to sell/hold the following Monday.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next