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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Marty R who wrote (1758)	12/30/1999 8:35:00 AM
From: Bob DeNuto	Respond to of 2241

When I look at the Options Analysis screens in E*Trade, after the column for the Black-Scholes price (which I understand) there is a column labeled 'Leverage %'. For 'far out of the money' options this column is '0', but as we near the stock price, the column contains values, both positive and negative. I looked on the help screens at the site, but can't find any definition or reference. Can someone please explain what the significance of this column is?