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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (32602)	1/9/1998 11:17:00 AM
From: Kevin	Read Replies (1) \| Respond to of 58727

They are not applicable in the real world from an ARB's standpoint. An arb will need to adjust the factors to suit the costs / risks of the company he is trading for. If he swicthed companys the next day, he would need to change the parameters for the new company. Like I said in that post to Sergio, each company wnats different exposure to equity risk and each company has different transaction costs. HOWEVER, as I said to Sergio, I still believe that the theoretical values are still a good indication as to where program buys and sells will be triggered. BTW, I do not recommend anyone to try to attempt trading options based off of FV information. By the time you identify the program guided buy order and get you order filled, the move could be over. Even if it is not, you will pay a large premium on your options by the time you place an order when the program trading is going on. Been there. Done that.