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To: TEColeman who wrote (2817)1/22/1998 7:32:00 PM
From: Marc Schiler  Read Replies (1) | Respond to of 93625
 
<Why, when I bought Puts for feb @ 40 have they not moved with the 4$ drop in the underlying security?>

... because everyone expects the trading range to be between 45 and 55, and considers 40 to be the extreme. Incidentally, this means that if it does drop below 40, we will see real panic. (Hmmm.) I guess that we will just have to watch how February plays out.

MS