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To: LLCF who wrote (35721)	3/13/2007 12:15:28 PM
From: tyc:>	Read Replies (2) \| Respond to of 78431

>>there is a systematic approach for valuing options Yes ! But I think the point is worth making that if the systematic approach says the option is "overpriced", it doesn't make the option any less desirable (and vice versa). It may indicate that the market knows something (that B.S. doesn't know), and is bidding up the option price accordingly (and vice versa). Under-priced doesn't necessarily mean "more desirable". Hence "there is no such thing as an overpriced call" if the underlying is going significantly higher (and vice-versa lol). I remember once selling some aemlw because the warrant had suddenly become overpriced ! Guess what happened.