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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: RocketMan who wrote (6713)	4/19/2000 6:51:00 PM
From: Steve 667	Respond to of 8096

Rocket Man, Let's take a look, shall we. I did an option quote spread when the stock was at $108. The July 95 was selling at 33 1/8 - This is $13 IN the money The July 85 was selling at 38 3/8 - This is $23 IN the money. From the above we can see that a July option that is $13 ITM sells for $33 1/8 So I assume that if the stock goes down 10 points to $98 then: The July 85 is then only $13 IN the money. (instead of $23) Therefore the July $85 should sell for about 33 1/8 since it is now $13 ITM. Am I missing something? I know I really don't understand all that Black-Scholes and delta stuff. Too confusing. My motto is KISS. Let me know what you think. Steve 667 * We do precision guesswork here!