Dell Technologies Inc. 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 : Dell Technologies Inc.

DELL 138.27

-1.5%

2:23 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: PAL who wrote (55428)	7/31/1998 2:50:00 AM
From: brian z	Read Replies (3) of 176387

<80% of options expire worthless> I don't think people have any statistical ground for this statement. When options are initially listed, they have many striking prices surrounding the current price of underlying stock (ie. DEll has strikes form 50 to 150). Then, calls and puts are traded at all strikes, so there will be some open interests in all series. As the stock fluctuates during the life of options, various strikes will become more liquid as the stock price nears particular strike. As a result, open interest will build up at various strikes. For instance, DEll options at strikes around 120 now. By expiration, if the stock (DELL) price has risen, nearly all calls will be in-the-money and therefore will not be worthless; if the stock price has fallen, nearly all puts will be in-the-money and therefore will not be worthless either. In either case, far less than 80% of option expire worthless. Since options are listed at least 9 months in advance of expiration, there is a great chance that the stock have a serious price change by the time option expiration rolls around. So Most of options do not expire worthless.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next