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To: Land_Lubber who wrote (42679)	2/2/1999 8:05:00 PM
From: VincentTH	Read Replies (1) \| Respond to of 53903

Re: Strangely, the ask price on the MUNLs (Feb 60 put) was 3/4 both just prior to 1300EST and just prior to the close (1600), although the underlying was about $3 HIGHER at the close (75 vs. 72)! This is the opposite effect to time value loss, since the option is worth MORE at a later time, despite a significant UNFAVORABLE price move. Because the 72 5/8 closing price was a fake.

To: Land_Lubber who wrote (42679)	2/2/1999 9:07:00 PM
From: John Graybill	Read Replies (1) \| Respond to of 53903

There are a lot of variables that go into the option price. Some are quantifiable using a ridiculously complicated equation (Black-Sholes), some are based more or less on the mood the option specialist is in. The variables that come to mind immediately (how far out of the money, how long until expiration) don't apply to the question of why there would be NO move in that option while the underlying stock moves the better part of a strike price. Three possibilities come to my mind, and there could be others: - the 3/4 price for MUNL is fair with MU at 72 (1 pm), and should be less than that with MU at 74 1/2 (4 pm), but the closing quote for MUNL is a gouge based on the panic move straight up from 3 pm. a stock that moves that much that fast gets a gouge factor in all its options, puts and calls alike. - there's a big dumperoo planned for early tomorrow; "They" know it, and are making sure they are getting a piece of the action. - they're basing the option price on that bogus 72 5/8 being the closing price of record, which it is at every quote site I've checked. However, I think this is the least likely one -- most of the other bid/ask's are about where they were yesterday, as MU itself is. It's gonna be interesting to see how they open MU tomorrow, assuming no overnight MU-specific news or sector-wide gap-down open -- 72 5/8 or 74 5/8. 72 5/8 would be a total downside scam IMO, just like 70 1/2 was an upside scam close on Friday Jan 22. (https://www.siliconinvestor.com/readmsg.aspx?msgid=7473650) Good trading to you and DB3. :-) John