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Strategies & Market Trends : Tech Stock Options
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To: ViperChick Secret Agent 006.9 who wrote (47990)7/17/1998 12:25:00 PM
From: Christineesq  Read Replies (1) of 58727
 
Lisa,

I think what Patrick meant was that by exercising the option, the 'option exerciser' is actually 'buying' the underlying index 'share', kinda like when someone owns 10 contracts of txn, when they exercise it they are buying 10000 shares of txn at the strike price of the option.

You were looking at the volume of option contracts traded in your post about the 580's have volume of over 12000 contracts on OI of over 14000. Look at the open interest. Loosely stated, the open interest is equivalent to the float of stocks. so you can have an OI of, say, 10000 contracts available on a particular strike price, and if options at a particular strike price are exercised, the OI goes down.

I hope I made myself clear HA!

Christine

EDIT BTW the spx finally took a decisive dive under the 1 min 89 ema along with the other ema's I track.... hmmm change of direction??
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