To: tonyt who wrote (15542 ) 2/21/1998 12:34:00 AM From: Flagrante Delictu Read Replies (1) | Respond to
tonyt, >> I don't understand your comment about today's vol in the options << I am not surprised by your inability to understand. After all, aren't you the one who demanded of one of the threadsters to show you one example of an option that moved 20% in the opposite direction of a stock that moved an eighth of a point in one day in the other direction? That calls into question your attestations that you trade stock & options. To not have known that such an event has happened innumerable times flies in the face of your obvious intelligence & illustrates the paucity of knowledge you have about options. Compound that with your failure to understand that out of the money warrants in LGND would have a couple of dollars of time value when you were proclaiming that they would be worth only pennies reveals to any knowledgeable observer how little you know about derivatives. To try to make it easy for you, please recall that you posted today that the up whoosh in LGND today was probably a function of the "large" open interest in the LGND Feb. options which expired this afternoon. You point out that the OI in the Feb 15 calls was 669 , the equivalent of 66,900 shares of LGND. Apparently, you are unaware that options out of the money have minimal influence on expiration day behavior, particularly when they were never in the money all day. Around 10 minutes before the close, about 1500 shares of LGND traded at $15.00 , putting the calls at the money for a brief moment. The total unconcern of those interested in LGND options was illustrated by the fact that your post indicated that not even one contract traded all day. For you to have seen that, & still intimated that the price action in LGND could have resulted from this open interest, calls into question your understanding of the options market once again. But, apparently, you're a glutton for attention & don't care that the threadsters can see time & time again your unfamiliarity with the material you're discussing. The open interest in the Feb.15 puts equalled only 23,500 shares of LGND. Around 140 of the puts traded because they were in the money & could have represented evening up of positions prior to the expiration, but clearly could not have caused the run from 14 1/8 to 15 & back to 14 5/8. I would not be surprised to see you continue to proclaim your inability to understand this post. I am aware from your prior posts that you have been unable to understand options. Bernie
