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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Electric who wrote (35904)	3/4/1998 9:14:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

The Greeks and stuff. I don't think I have the time, as the market shall open soon and I am not quite fully prepared, to properly get into this subject. You left out a lot of Greeks, so I don't know which one you were referring to that you forgot......probably the Delta (Hedge Ratio) which is the sensitivity of theoretical value to a change in the value of the underlying instrument. Vega (Kappa), and Omega (Elasticity) are also important. Tau and Theta are perhaps of somewhat lesser importance. Frankly, even though I am trying to get more insight on option pricing I don't trade them much so I have no serious opinion on your discussion. I just recommended the book. It's been my experience that the volatility skew is biased towards the calls over the past few years because of the bullishness of the market. Also, since the OEX split, I am of the opinion that there is more kurtosis or a "flattened" pricing range around the ATM options providing less ability to make profits as a speculator during market moves (naturally CBOE MM's would probably not agree but I have no data with which to provide as a conclusive argument). Anyway, I gotta bolt. ~~~~~~~~~~~~~~~~~~~~~ What's with the spell-checker on this thing? I had to go look up "Kurtosis" only to find I spelled it correctly.