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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?


To: KLAW97 who wrote (3771)10/29/1998 3:49:00 PM
From: oldcrow  Read Replies (1) | Respond to of 4969
 
Just a quick question....

Could someone please explain to me how American bankers Jan 50 call options (ABIAJ) can be going down in value while the stock is going up?

I bought these things for 1 1/2 when the stock was at 38 only a couple of weeks ago. The stock is now nearly 44 yet the options are down to 1 1/4!

I am aware of time erosion, but come on, I have never seen anything like this before.