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

To: tejek who wrote (141855)	1/18/2002 12:38:15 PM
From: TimF	Read Replies (1) \| Respond to of 1584596

Tim, my question is there a way of knowing before expiration that its likely the strike price will end up at $15? The reason I ask is that some columnists act as if they can figure that number out ahead of time with a fairly good degree of probability. You are getting strike prices mixed up with stock prices. The strike prices in my example are going to be $10, $15, and $20. They will not change unless the company splits its stock or gets bought out or certain other rare things happen. So to answer your question literally you can know that (one) strike price will be $15, but it wont be the only one. Perhaps what you think of as the strike price is the price such that any calls above this price are out of the money (puts below this price are out of the money) and any calls below are in the money (and the opposite for puts). However that price is simply the stock price at expiration. It is not called the strike price. If I knew of a way to predict stock prices reliably I would no longer have to work for a living. Tim