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To: George Coyne who wrote (35641)2/20/1998 5:29:00 PM
From: Ed Richmond  Read Replies (2) | Respond to of 61433
 
Maybe he is referring to th $40 calls. We all know the 35's are worth a half. I think it is exchange regulations that they will force exercise options worth 3/4 or more, but it is not a requirement below that level. What that means is some people may decide not to exercise their 35 calls. If you are bullish, you hope everyone will.
-Ed



To: George Coyne who wrote (35641)2/21/1998 12:33:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 61433
 
How do you figure? Aren't the 35 calls worth 1/2?

George,

They were able to be sold at 7/16th at closing. However, the spread from bid to ask during the cycle was always 3/8ths on the option until Friday. The Market Makers have a 3/8ths profit in the spread alone and the commission on selling ones calls for 7/16ths eats up most of the income to the owner.

Glenn


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