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

To: steve goldman who wrote (3988)	12/18/1998 4:44:00 PM
From: bazooka	Read Replies (2) \| Respond to of 4969

steve, thanks for helping me out with some of my option questions. here's another that has perplexed me. when looking at the option chain for AOL I noticed the following (look below). how can it be that the jan. 2001 70 call is so much higher than the 50 call. it seems counter intuitive. furthermore i noticed how today's action significantly effected the action on the 70 call but had no effect on the 50 call. i assume that the open interest plays into this big time; but i still can't come up with how or why these contracts are priced in this way. furthermore can you tell me how one finds a buyer if they want to write (sell) options which have low open interest and volume? one of your students, bazooka :-) JAN 2001 CALL 50.00 ZOLAJ 34 1/2 unch 0 0 0 0 0 open int. 28 JAN 2001 CALL 70.00 ZOLAN 54 5/8 +9 3/8 54 55 55 3/8 54 5/8 23 open int. 1,035