{"id":846,"date":"2002-07-29T19:29:31","date_gmt":"2002-07-30T02:29:31","guid":{"rendered":"http:\/\/mossback.org\/archives\/2002\/07\/wsj-on-options\/"},"modified":"2002-07-29T19:29:31","modified_gmt":"2002-07-30T02:29:31","slug":"wsj-on-options","status":"publish","type":"post","link":"https:\/\/bennett.com\/blog\/2002\/07\/29\/wsj-on-options\/","title":{"rendered":"WSJ on options"},"content":{"rendered":"<p>\t\t\t\t<a href=\"http:\/\/online.wsj.com\/article\/0,,SB1027895145318594280,00.html?mod=opinion%5Fmain%5Ffeatured%5Fstories%5Fhs\">WSJ.com &#8211; Thinking Things Over<\/a> discusses options today:<\/p>\n<blockquote><p>To put it another way: The essential purpose of earnings reports is to help the market price stocks accurately, so incorporating the share price into earnings is circular and confusing. Earnings per share is a calculation with a numerator and a denominator. Options will already show up in the denominator as they&#8217;re converted into shares; they&#8217;re already included in &#8220;fully diluted&#8221; EPS. By what logic should they be factored into the numerator as well?<\/p><\/blockquote>\n<p>They also do us the favor of supplying the famous Black-Scholes Model that&#8217;s supposed to restore investor confidence in the market, to whit:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"blackscholes.gif\" src=\"http:\/\/www.bennett.com\/blackscholes.gif\" width=\"265\" height=\"300\" border=\"0\" \/><\/p>\n<p>Now you feel better, don&#8217;t you?\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WSJ.com &#8211; Thinking Things Over discusses options today: To put it another way: The essential purpose of earnings reports is to help the market price stocks accurately, so incorporating the share price into earnings is circular and confusing. Earnings per share is a calculation with a numerator and a denominator. Options will already show up &hellip; <a href=\"https:\/\/bennett.com\/blog\/2002\/07\/29\/wsj-on-options\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;WSJ on options&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4],"tags":[],"class_list":["post-846","post","type-post","status-publish","format-standard","hentry","category-comp"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbifyw-dE","_links":{"self":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/posts\/846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/comments?post=846"}],"version-history":[{"count":0,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/posts\/846\/revisions"}],"wp:attachment":[{"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/media?parent=846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/categories?post=846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bennett.com\/blog\/wp-json\/wp\/v2\/tags?post=846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}