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To: Analog Kid who wrote (14677)1/23/1998 1:03:00 AM
From: Analog Kid  Respond to of 97611
 
S & P Futures up 3 1/2 pts.
Japan up 400 pts.

Looking promising.........



To: Analog Kid who wrote (14677)1/23/1998 1:07:00 AM
From: mozek  Read Replies (1) | Respond to of 97611
 
DM,
The calls are not at a discount. All of the volatility has also been halved. From 30 to 35 is the same as from 60 to 70 in actual number of dollars after the split. Options are priced on strike, time, volatility, and a little market maker bonus cost. I followed your last few posts on this subject, and I fail to see why you feel that the options are cheaper. If the stock splits 2-1, the shares double and the price and volatility are cut in half. Same goes for the options. What is it specifically that seems out of whack?

Thanks,
Mike