Options for Newbies -(Help Me Obi-Wan-Kenobe) Message Board

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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)

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To: RealTime who wrote (1474)	6/30/1999 2:27:00 AM
From: Madpinto	Read Replies (2) of 2241

As a former market maker on the CBOE, I have seen some pretty weird things happen with options. Many times you will see drops in volatility (time value) force the price of options down significantly after a news event. Did the stock have or expect news between the time you bought the options and the time the options went down in value? I find it hard to believe your calls would act so badly unless something caused the premium to get crushed. You may have caught some bad luck unless you bought the calls for some upcoming news. It surprises me, even with my experience, that those calls performed so poorly in such a short time.

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