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Strategies & Market Trends : Tech Stock Options

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To: HairBall who wrote (55352)10/13/1998 1:25:00 PM
From: Linda Kaplan  Read Replies (5) of 58727
 
Are there any options experts around here? When EK closed last night, the bid on the put was 1-1/2, now EK is down almost 11 points but the put is only bid at 4-3/4. It's in the money now, with a strike of 75, while the stock is at 72-11/16. It seems like the entire (large) premium is being evaporated today, all in this one day, though it's a November put and has a month to run. Any comments on why and when this happens? I don't expect a 1:1 ratio, so wouldn't have expected the put to be bid at 12 now, but 4-3/4 seems surprisingly meager, doesn't it? Is there any way to predict anything about this phenomenon?

Linda
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