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Technology Stocks : America On-Line: will it survive ...?

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To: Robert Giambrone who wrote (3631)6/26/1997 11:02:00 PM
From: The Duke   of 13594
 
Are we talkimg july 55s? they would be $3 at around 53.5 at current
IV. but theta is more than .05 so you are losing money fast with time decay. The stock needs to go down 1/8 per day just to break evem at this point. good luck. IMO, if your going to play naked options, try to keep them three months out. That's where your best value is. At three months out, thetha is only .02. then the stock only has to go down a nickel a day to break even. Too many option players are looking for home runs. Go for the base hit.

good luck, lets hope this dog takes a poop soon,

eric
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