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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (108061)4/27/2000 1:12:00 PM
From: Dinesh  Respond to of 1570341
 
Tim:

This is what I picked from options wiz, but could not
substantiate. Off hand, it seems reasonable.

"Economists at the Options Clearing Corporation estimate that 30% -
33% of stock and index options expire worthless, and perhaps as much as another 20% -
33% are offset at a loss. The remainder? OCC staff says some 12%-15% are exercised,
and 55% are offset by closing sale (this includes the 20% to 33% offset at a loss). These
figures can vary widely month to month and security to security, they say."

Regards
Dinesh



To: TimF who wrote (108061)4/27/2000 1:17:00 PM
From: Richard Wang  Respond to of 1570341
 
Tim,

RE: I think the figure I heard was 80%.

Thanks for the correction! This would say option writer wins MORE THAN 80% of the time. I would take that kind of favorable odds anytime, and I have been taking them to make lots of money.

Good luck, and always be careful so you don't stretch your money too much, especially with margin and options.

Richard