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Technology Stocks : Dell Technologies Inc.

DELL 138.22

-1.6%

Dec 9 3:59 PM EST

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To: Chuzzlewit who wrote (72989)	10/19/1998 8:11:00 PM
From: Lee	of 176387

Hi Chuzz, ..ReAs a writer of options I am making my money by selling time value to a buyer, so it seems to me that I want to maximize the time value per day. I want to sell options at the point where the slope becomes steepest. In all this options discussion, no one has mentioned the volatility. If selling options, I use big runups to sell calls (bonds). That way, one can sell both nearer time options because once there is any pullback at all, both volatility premium and remaining time premium are stripped very quickly. It also seems the best time to go long puts or vice versa for a big sell-off. Needless to say these are two days max trades. I guess the point is that in addition to remaining time value and intrinsic value, a third characteristic is volatility premium which is not a constant value. Regards, Lee

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