Send me an email at [email protected] and I will send you back a copy of the chart I referenced when advising my clients to sell their stocks on May 10th. It was a post on my blog, and I covered the formation in more detail in my newsletter.
Unfortunately, even though it is in my blog archives for the date May 10th, I cannot seem to pull it up from the blog. However, I do have a copy of the chart that I can send you. If you want to try and go to the blog and see if you can find it, the blog is http://iamafuturestrader.blogspot.com/
anxvariety, what do you mean most cars expire worthless? We expect cars to lose value. We expect our investments to gain value. I don’t get the analogy.
I told you before to check the CBOE(Chicago Board Options Exchange), the stats should be there somewhere. Historically, the ratio has been about 90%. I do not know what it is currently. I was a heavy options trader many years ago, and the stats year in year out ran about 90% back then, as I have already stated. It may have changed, but I doubt it.
This does not seem to be a stat you want to here, so just ignore it.
It is a function of how they are priced with intrinsic value, and time premiums combined. This stat is very useful in trading options. This is why the pros are option sellers not buyers. This is a stat to be embraced in my opinion, it gives a tremendous advantage to those who know what they are doing.
This would be the arb guys, and a few hedge funds. They develop very complex algorithms to exploit this. They lock in the guaranteed small gains with large size, and just do it over and over again. It is kind of like Best Buys model. The margins are very slim, but the volume is very high.
