Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Dwight E. Karlsen who wrote (13588)	1/14/1998 11:29:00 PM
From: Seyda	Read Replies (2) \| Respond to of 97611

Dwight, Re: <<All CPQ 60 & 65 calls will expire worthless, IMO.>> The following seems to support your opinion. Nevertheless, I hope the Friday's price turns out to be a pleasant surprise on the upside. 59.125....46058....1744645.....0.026 60.375....6243142..1148245.....5.437 65.06.....6289201...596400....10.545 column 1: cost per share for options column 2: approximate total call open interest out of the money given the level in column 1 (as of today) column 3: approximate total put open interest out of the money given the level in column 1 (as of today) column 4: ratio of colum 1 to colum 2 (ratio of call-out-of-the-money to put-out-of- the-money) Please take a look at the third column where we have the ratio of call-out-of-the-money to put-out-of-the-money at a given level of unit cost. From the third column, we can interpolate that out-of-the-money totals (for puts and calls) balances roughly around 59.50 $/share level (59.50 is the level for which the third column value roughly corresponds to 1). From this simple analysis, somewhere around 59.5 seems to be a probable level the sides would compromise in the tug of war at the expiry. But again, what do i know... Best regards Seyda