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In a message dated 98-06-10 16:31:14 EDT, droex@xxxxxxxxxxxx writes:
<<
People love to throw out 90% numbers when it comes to derivatives. They
are almost always not based on fact. The common assumption is that 90%
of options expire worthless. That is also a fiction. 30% of options
expire worthless and that number in and of itself say NOTHING about
overall profitability.
>>
Does anyone out there know where this scary 90% (of options expiring
worthless) figure came from, who made a survey or statistical analysis to come
to this conclusion, or who first wrote about the figure in a published article
(and thereafter people started quoting him)?
Just curious,
WilliamW
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