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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (56071)	4/14/1999 8:39:00 PM
From: TheStockFairy	Read Replies (1) \| Respond to of 132070

Is that a good thing or a bad thing?

To: Tommaso who wrote (56071)	4/15/1999 12:08:00 PM
From: Joss	Read Replies (1) \| Respond to of 132070

Tommaso, You might want to check with the CBOE folks. I was told many things by various brokers about options after splits. The way the CBOE explained it to me, and it was correct for the options I held was as follows: Assume a 2:1 split. Original strike 100. You now have 200 share option to maintain your volatility, HOWEVER, your multiplier for pricing the worth of the option is still 100. The strike is still 100 for you. So take the stock price, double it in this case and see how well you are doing. It is done this way to maintain the volatility of the original purchase which would not be the case if they just gave you a new strike of 1/2 the original option strike. Steve