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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Bill/WA who wrote (8723)	10/1/1998 1:31:00 PM
From: Douglas Webb	Read Replies (1) of 14162

I've got the same problem... I'm holding BTGC Jan 5 Puts, and they've barely moved even though BTGC has dropped from 7.50 to almost 6. Here's my explaination: according to my options page, the Jan 5 Calls have a delta of 0.78. That means the put has a delta of 1-0.78 = 0.22. So, for every dollar BTGC drops, the put should go up 22 cents. That's less than the bid/ask spread, so there's no real push for a change in price. Your deltas are: TNSI Oct20 Put: Delta=0.19, hasn't moved LHSG Oct40 Put: Delta=0.14, has gone from $1 to $1.50 Some in the money puts: TNSI Oct30 Put: Delta=0.81, has gone from $2.50 to $5.50 LHSG Oct60 Put: Delta=0.84, has gone from $10 to $14 BTGC Jan12.50 Put: Delta=0.83, has gone from $5.25 to $6.00 Doug.

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