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I know how it works, I was a market maker for 10 years. I was talking about
strikes not open interest as I assumed you were from the way it was stated.
Ira
RAY RAFFURTY wrote:
> -----Original Message-----
> From: Ira <ist@xxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, January 07, 1999 12:09 PM
> Subject: Re: OPTION VOLUME
>
> >Half, have to go out worthless. If all the calls are in the money, logic
> says
> >all the puts are worthless. Ira
>
> Hi Ira,
>
> I'm afraid it doesn't work that way. Today's open interest for a
> Jan. OEX 630 Call was 9982 contracts. The open interest for the Jan. OEX
> 630 Put was only 3313, about !/3. Just because a put and a call have the
> same strike price (630) does not mean the same number of contracts will be
> sold. If the OEX where to close at 627 on expiration day (and the open
> interest remains the same) the 9982 calls would be in the money but only
> 3313 puts would expire out of the money.
>
> Good luck and good
> trading,
> Ray
> Raffurty
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