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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Graybill who wrote (42684)	2/3/1999 4:33:00 AM
From: Land_Lubber	Read Replies (1) \| Respond to of 53903

Thanks for the info. > Some are quantifiable using a ridiculously complicated equation (Black-Sholes) I have used a simplified version of this equation in my Mathematica option pricing model. I use it for "testing" the potential results of various spreads and combinations. Despite having shown how I could limit my risk in various ways, so far I have always decided to go with straight puts or calls for maximum return, and damn the torpedoes. :) > they're basing the option price on that bogus 72 5/8 being the closing price The bid/ask on the option did not change at all in the last 10 minutes. That bogus trade had no effect whatsoever. > 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. This is what I think too. It surprised me though, because I was expecting the premium to swell as the stock dropped; i.e., as puts became more and more obviously the "thing to do" they would get more expensive. Didn't happen. Instead, they became more expensive when it looked like MU was getting a lot of support. I suppose no one was fooled, and everyone would see it as an opportunity to buy more puts, hence they were made more expensive. > there's a big dumperoo planned for early tomorrow; I guess that's another way to say the same thing. My boat is fully loaded now. Hopefully the MU bears (whether the perma- or opportune variety) can make some serious dough on Wednesday! Land_Lubber