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To: Kayaker who wrote (55431)	7/31/1998 12:46:00 PM
From: 4 - Bob	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>> However many of the options that do not expire worthless have lost value and are therefore worth less than the price the option purchaser paid for them. Even if the option purchaser is right about the direction of the price movement of the underlying stock, he (or she) must additionally overcome the negative impact of time decay, bid/ask spread and commissions in order to see a profit. Also he must either sell, exercise or be assigned incurring additional fees. On the other hand, time decay works in favor of the option writer and many times he does not incur additional fees because his greatest profitable position is created by an expiration. The bottom line is the deck is stacked in favor of the option writer. But beware that news worthy events( earnings, splits, mergers, new products, analysts recommendation, etc) can dramatically negate everything I have said. 4-Bob