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To: Elmer Phud who wrote (177814)5/6/2004 9:30:48 PM
From: Robert O  Read Replies (1) | Respond to of 186894
 
I can tell you don't play options... Your assumptions bear little relationship to reality.

LOL

Again, we all can agree that there is value to the receiver but no one has shown an actual expense to the grantor except opportunity lost. This is why I am an active writer of options. I'm selling thin air and people are paying me for it.

Uh, I'm sure I am not the only one getting a chuckle here. Of course I made my example REALLY simplistic to prove a point. You ignore the entire concept of recognizing that the B/S model CAN do a darn good job of statistically trying to estimate option pricing.

But the true kicker is:

'I'm selling thin air and people are paying me for it'

Yup. You sound super sophisticated. I'm amazed the rest of the market has not picked up on your free money system by now.

Hilarious.

RO

Ps Let me guess you are about to quote me the 'axiom'[sic] that 90% of options expire worthless right? Do you want to know why that is so misleading or can you come up with it yourself. hey no offense here but maybe we'll all save you a few bucks in the long run.