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

To: YlangYlangBreeze who wrote (6796)	4/21/2000 10:21:00 AM
From: Poet	Read Replies (1) \| Respond to of 8096

Hi YYB, I vaguely remember something from the options conference about the pricing of calls vs. puts always being skewed toward more expensive calls because of the general upward bias of the market. Also, I think RMBS bid-ask spread is wide due to the volatility of the underlying??? Or it may just be those nasty MM's. <ggg>

To: YlangYlangBreeze who wrote (6796)	4/21/2000 11:46:00 AM
From: edamo	Read Replies (1) \| Respond to of 8096

joelle....sl/ss.... always keep in front of you, in clear sight, the understanding that all the books on options were written with a kinder and gentler market in mind.....current market is so dynamic and volatile that by the time you calculate using any formulae, the numbers are no longer valid....the implied volatility is not able to be calculated in advance, it becomes tangible when the offer is made and accepted, and the very next trade can be much higher or lower....remember you have stocks moving +/- 10% or more in a few minutes....the bid/ask spread if wide can reflect what the real situation is, or a trader testing the waters......similar to a less then liquid common stock spread....