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Strategies & Market Trends : Option Granting Practices and exploits -- Ignore unavailable to you. Want to Upgrade?


To: Doc Bones who wrote (11)7/18/2006 2:25:05 AM
From: RockyBalboa  Read Replies (1) | Respond to of 165
 
No victim, hmm.

Do I sound arrogant if I say that those folks are not familiar with portfolio and price distribution issues?

Like, well a given set of companies with common stock owned by the public issues options. "On average" those options might be always at the money, meaning also that the common shareholder is possibly at par.

What counts is that the linear portfolio is perhaps at par (ie a portfolio of such common stock) but an options portfolio will likely be worth much more. Particularly when one considers options don't cost them anything and also no cash needs to be refinanced to by stock.