RE: [RT] qqq - option pricing problem

["M. Simms" <prosys@xxxxxxxxxxxxxxxx>]

There's something 
wrong with the pricing model used in developing the numbers on this 
grid.....
those options far 
out of the money have a theoretical price that is way, way too 
high.
<FONT color=#0000ff 
size=2> 
Could the 
interest rate used in the option model calculations be too high 
?
<BLOCKQUOTE 
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid">
  <FONT face=Tahoma 
  size=2>-----Original Message-----From: profitok 
  [mailto:profitok@xxxxxxxxxxxxx]Sent: Friday, May 10, 2002 7:14 
  PMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re: [RT] 
  qqq
  Ray
  this is a great tool  you have
  Especially  to see under/over value
  when you have time 
  can you post   may 2002 calls puts
  25-35
  this WILL show were arbitrage CAN happen
  Ben
  <BLOCKQUOTE 
  style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
    ----- Original Message ----- 
    <DIV 
    style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
    Ray 
    Raffurty 
    To: <A 
    title=realtraders@xxxxxxxxxxxxxxx 
    href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx 
    
    Sent: Friday, May 10, 2002 10:49 
    AM
    Subject: Re: [RT] qqq
    
    <IMG alt="" hspace=0 
     
    I forgot to attach the table.
     
    Good luck and good trading,
     
    Ray Raffurty
     
    <BLOCKQUOTE 
    style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
      ----- Original Message ----- 
      <DIV 
      style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
      Ray 
      Raffurty 
      To: <A 
      title=realtraders@xxxxxxxxxxxxxxx 
      href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx 
      
      Sent: Friday, May 10, 2002 10:18 
      AM
      Subject: Re: [RT] qqq
      
      Unfortunately this trade has gotten away from 
      you by a large amount.  There is no miracle cure when you are this 
      far down, but you can help the situation by selling 2 out of the money 
      call leaps, say the Jan-04 38 or 40 and buying 1 at the money call leap 
      with the same expiration date, the Jan-04 30.  Try to do this for 
      little or no debit.
       
      If you send me the details (number of 
      shares, purchase price, when purchased, commissions 
      paid) privately at <A 
      href="mailto:r.raffurty@xxxxxxxx";>r.raffurty@xxxxxxxx I will look at 
      it in more detail.
       
      Good luck and good trading,
       
      Ray Raffurty
       
      <BLOCKQUOTE 
      style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
        ----- Original Message ----- 
        <DIV 
        style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
        <A title=JAC1390@xxxxxxx 
        href="mailto:JAC1390@xxxxxxx";>JAC1390@xxxxxxx 
        To: <A 
        title=realtraders@xxxxxxxxxxxxxxx 
        href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx 
        
        Sent: Thursday, May 09, 2002 8:06 
        PM
        Subject: Re: [RT] qqq
        <FONT lang=0 face=Arial size=2 
        FAMILY="SANSSERIF">I am holding a position in QQQ's down 20 points. Can 
        anyone recommend a strategy for writing options on position with the 
        intent of not selling position. In other words if position gets 
        close to getting called away I want to maintain position rather than 
        realize loss. Pie in the sky 
        thinking?To unsubscribe from 
        this group, send an email 
        to:realtraders-unsubscribe@xxxxxxxxxxxxxxxYour 
        use of Yahoo! Groups is subject to the <A 
        href="http://docs.yahoo.com/info/terms/";>Yahoo! Terms of 
        Service. To unsubscribe from 
      this group, send an email 
      to:realtraders-unsubscribe@xxxxxxxxxxxxxxxYour 
      use of Yahoo! Groups is subject to the <A 
      href="http://docs.yahoo.com/info/terms/";>Yahoo! Terms of Service. 
      To unsubscribe from this group, send an email 
    to:realtraders-unsubscribe@xxxxxxxxxxxxxxxYour 
    use of Yahoo! Groups is subject to the <A 
    href="http://docs.yahoo.com/info/terms/";>Yahoo! Terms of Service. 
    To 
  unsubscribe from this group, send an email 
  to:realtraders-unsubscribe@xxxxxxxxxxxxxxxYour 
  use of Yahoo! Groups is subject to the <A 
  href="http://docs.yahoo.com/info/terms/";>Yahoo! Terms of Service. 







Yahoo! Groups Sponsor


ADVERTISEMENT









To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx





Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.

Attachment: Description: ""