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royg1927

06/13/14 3:37 PM

#15906 RE: jmbar2 #15903

Jane, your INTC 29.50 puts.

The reason that the quoted price for that strike is 0 is becauset nobody thinks the stock will reach the strike in just another half hour.

Stock last trade was 29.82 or so.

An option MUST be in the money at expiration to have any value at all.

Remember my advising you to put a dot on your chart at the strike price and expiration time? You can do that now. Realistically, do you think anybody else thinks the stock will hit 29.50 in the next 25 minutes?

What our job as traders is, is to look at the charts and any other information and try to imagine what the universe of traders might think. I don't think anybody is going to bet even a penny that the stock will hit 29.50.

Come back and we can discuss strike selection in more detail. You asked about that again recently.