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To: GVTucker who wrote (178234)	5/31/2004 12:30:05 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 186894

GVTucker - Uh, wrong. The options market is a zero sum game. The money made on one side of an options trade is the exact same as the money lost on the other side of the trade, less whatever transaction costs are incurred. Poor choice of terms on my part. If BS was anything but a rough estimate then the 2 sides would both break even, taking into account the prevailing interest rates, time and volatility. People count on BS to be wrong and they think they can out smart it. There were many options professionals early on in the public listed options markets that counted on Black Scholes to be wrong, and those people lost millions of dollars. And it was the people that embraced Black Scholes early on that made the money from them. So now you're claiming that BS is a good predictor?