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Technology Stocks : America On-Line (AOL)

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To: Modano who wrote ()10/6/1999 6:46:00 PM
From: Inside_Options   of 41369
 
AOL October and November options....

While you can still make money on October options, be very careful. The price decay is accelerating quickly. Also, the public is long tons and tons of Oct 115, 120, 125 calls (and they are winning!). The market makers know this and are not aggressively buying those options as they know they will have customers exiting (customer selling option back to market maker) all day.

November options have been well bid recently. Unless there is some huge price action before AOL earnings (Wed the 20th), expect those options to get significantly cheaper the thurs and friday of expiration and then the monday and tues after. Customers almost always come in and sell the new month options when the old rolls off...
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