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

To: Stocker who wrote (7597)	11/22/2000 1:14:17 PM
From: X Y Zebra	Read Replies (3) \| Respond to of 10876

the Jan02 at the money calls seem so cheap at $7.50ish. Also, you don't have to pay up to get an extra year in the '03's. Any thoughts on why this might be the case BESIDES the fact that ORCL hs been beaten up pretty badly and sentiment is at a lower point now? ORACLE is trading around 22 to 24 range in the last couple of days. The Jan/01 $22(ORQAX) is trading @ 3.5 x 3.75 The Jan/02 $22.5 (WOQAX) is @ 6.875 x 7.375 The Jan/03 $20 (VORAD) is @ 9.785 x 10.375 The Jan/03 $25 (VORAE) is @ 8.25 x 8.75 () The above data was taken off a real time source Here you can get delayed information: (make sure you select the option were all LEAPS are displayed) quote.cboe.com Now.... The above pricing seems to be "normal" as far as my experience has shown me. () NOTE that strike prices of Jan 01 & Jan 02 are $22 (ATM since Oracle is trading around there). However when you go to Jan/03 the strike prices available are either $20 or $25. The above could have been caused by a split, causing the $22 strike price, since at the time the split took place, the Jan01 and 02 were already trading --BUT NOT the Jan/03 This will cause a slight variation why it seems that going an extra year does not seem that expensive, IF you go to the strike price of $25 (NO $ 22 Strike on Jan-03) In addition, because these contracts may not be actively traded, it is possible that you are getting "stale" quotes. This is important, so make sure that you are NOT getting such stale quote. Finaly, depending who is your broker, make sure that in placing the order you are getting the "best market (bid or ask, depending if you are selling or buying), since option quotes CAN and WILL vary between the 4 exchanges. Depending of who is your quote provider, you can determine the exchange where the quote cpmes from. For example.... Symbol: ORQAX (ORACLE JAN/01 $22) you input: ORQAX.o (Composite of all exchanges) ORQAX.co (CBOE - CHICAGO) ORQAX.ao (American Exchange) ORQAX.po (Pico - Pacific Exchange) ORQAX.xo (Philadelphia) I hope that helps.