SI
SI
discoversearch

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 : Y2k : effects on non Y2k related stocks
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Geoff who wrote (29)7/27/1998 4:18:00 AM
From: Ken Crounse  Read Replies (1) of 54
 
Geoff,
Re: exercising, I was just trying to explain why the pricing of these options might appear strange; being of the 'European' variety.

However, intuitively it seems like it could be more difficult to get a good price for such options. For instance if we'd bought the Dec99's slightly out-of-the money last week and the market plunges this week, it is possible that the price might not change much since most people might expect that the market will rebound by the way-future expiration date. Here time is not your friend it seems. I guess I should look more into how such options are priced.

I like the general scheme of buying index puts now, reaping the rewards from Y2K market panic sometime in 1999, and investing into the sell off. It would be nice to target some particularly vulnerable companies though since a) return could be much better than the general market and b) LEAPS can be bought for JAN 2000 just in case that little bit of extra evidence is still needed by that date. Do you have any good ideas?

Ken
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News