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To: Kayaker who wrote (9866)	2/22/2005 1:07:58 PM
From: Kayaker	Respond to of 13403

DJX SC Jun06 $120 @ 12.00. Gross profit $400 OT -- A question for all you options experts. My understanding of an option's price is that it consists of intrinsic value + time value. I've got some in-the-money DJX (Dow Index) puts. They are the June '06 120 puts (ZDX RP). At the moment, the DJX is at 106.90. As I understand it, the 120 puts can't be priced less than their intrinsic value, i.e., the strike price minus the index price, which is 120 - 106.90 = 13.10. But the bid and ask is 11.90 x 12.50. The price is updating every minute or so. I've got a sell in at 12.20 and they still won't take it. These are European style options, i.e., you can't exercise them until expiration. That's the only reason I can see that they are getting away with this. There... just got out at 12.00. Ripped off!