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Biotech / Medical : ATIS is on the move! -- Ignore unavailable to you. Want to Upgrade?

To: HighGain who wrote (1394)	2/2/1998 8:29:00 AM
From: Bill Marble	Read Replies (1) \| Respond to of 2205

Mini options lesson for those who care: There are five factors used to price options. The three that are important in this case are: Price of ATIS stock Volitility of the stock Time until contract expiration Because of the panel meeting and the potential for a sharp move in either direction, the volitility factor of the option price became a large influence in the days prior to the meeting. Since ATIS stock is generally not very volitile, once the results were announced, volitility ceased to be much of a factor. ATIS stock price and time until expiration became the largest influence on the contract price. Essentially, once the results were announced, the volitility portion of the option premium (which was significant) vanished. WEM