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Technology Stocks : Loral Space & Communications

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To: Geoff who wrote (2471)4/3/1998 6:34:00 PM
From: dougjn   of 10852
 
There are two seperate issues, re: the timing of realizing options profits.

One is market/stock issue timing.

The second is avoiding the worst of time premium errosion.

Time premium errosion is nothing like straightline. It errodes much, much faster near to expiration. As in last few months on down, exponentially.

Obscuring this somewhat is volatility premium. I.e., the premium in any option increases the greater the recent volatility (esp. if its in the same direction as the option bet.)

Nonetheless, generally options ain't for me. Did consider Lor leaps back when, but then the premium built.
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