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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (33008)	10/15/2000 7:59:52 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 42787

OX, I only count winning and losing contracts at expiration. that's because at expiration, losing contracts have zero value and winning contracts only contain intrinsic value. Right wrt zero value and intrinsic value, but intrinsic value is the amount the contract is in the money, so in principal it matters very much where the strike prices of the high open interest contracts fall in relation to the closing price. Consider a fabricated case Strike Call OI Put OI Losers $Value 45 5000 1000 18000 $22.0M 50 2000 2000 15000 $17.5M 55 3000 4000 17000 $15.0M 60 2000 3000 17000 $16.0M 70 5000 5000 20000 $23.0M 17000 15000 Losers and $Value are the number of losing contracts and the dollar value of all the ITM contracts if the closing price is at the tabulated value. The maximum number of losing contracts is at 70, where all the puts and strike 70 calls are worthless, but the dollar value of the ITM contracts is minimized at a closing price of 55. Dan