Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (10889)	12/2/1998 5:11:00 PM
From: Timothy Liu	Read Replies (1) \| Respond to of 93625

> zixaj 56.75 up only 3 It reads 52 (+3 1/4), bid 56 3/4, ask 57 3/4. Only 5 contract traded. The bid/ask went up but no contract were traded, you were looking at the last trade which was 52. You should be able to sell at the bid (if you want) at 56 3/4 And I noticed that +3 1/4 can sometimes be very deceiving. If there is no contract traded the day before, that difference may not make any sense to you. For example: 1st day: stock price 90, last trade of your call 50. 2nd day: stock price 80, no contract traded so that 'last trade' is still 50. 3rd day: stock price 92, your call is traded at 51, at (+1) even though the stock went up 12$. Tim Just my 0.02$

To: Sonki who wrote (10889)	12/2/1998 5:41:00 PM
From: Kayaker	Read Replies (1) \| Respond to of 93625

Yesterday, the closing bid on the Jan 2001 50 calls was 50.25. Today it was 56.75, so they are up 6.50. About the only way to know this is to print off the option price sheets every day. They didn't go up 8 because the delta is less than one. Delta is the amount the call goes up given a one point rise in the stock price. The more "in the money" your calls, the higher the delta, eg, your 50 calls have a higher delta than my 70 calls (which went up 5.625 today). There are many option calculators around (one at CBOE) so you can calculate the delta for your particular calls. Then you know how much of a gain to expect for every point rise in the stock. Whatever your calls, it was a heck of a day!