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To: PAL who wrote (55428)	7/31/1998 12:05:00 AM
From: Kayaker	Read Replies (1) \| Respond to of 176387

80% of options expire worthless "...most do not expire worthless. The CBOE publishes an annual statistics booklet....The CBOE statistics indicate that approximately 35% of option contracts expire worthless." Options for the Stock Investor by James B. Bittman (Staff Instructor CBOE)

To: PAL who wrote (55428)	7/31/1998 12:54:00 AM
From: JBird77777	Respond to of 176387

Re: DELL Options My criterion for selling options is the same as my criterion for selling stock: would I buy this option (stock) at the current price today? If so, I hold (and possibly buy more); if not, I sell. How much the option or stock has risen or fallen since I bought it should have nothing to do with it, IMO. JB

To: PAL who wrote (55428)	7/31/1998 2:50:00 AM
From: brian z	Read Replies (3) \| Respond to of 176387

<80% of options expire worthless> I don't think people have any statistical ground for this statement. When options are initially listed, they have many striking prices surrounding the current price of underlying stock (ie. DEll has strikes form 50 to 150). Then, calls and puts are traded at all strikes, so there will be some open interests in all series. As the stock fluctuates during the life of options, various strikes will become more liquid as the stock price nears particular strike. As a result, open interest will build up at various strikes. For instance, DEll options at strikes around 120 now. By expiration, if the stock (DELL) price has risen, nearly all calls will be in-the-money and therefore will not be worthless; if the stock price has fallen, nearly all puts will be in-the-money and therefore will not be worthless either. In either case, far less than 80% of option expire worthless. Since options are listed at least 9 months in advance of expiration, there is a great chance that the stock have a serious price change by the time option expiration rolls around. So Most of options do not expire worthless.