jill....re" options"
options do trade on their own, that is why even though some on this thread disagree, never, ever use a market order.....you will get eaten alive, and not derive any pleasure from being the main course.
they move in concert in normal markets, but with a fast moving issue, they move better then the underlying, if you catch an inflation of premium. the common moves much faster, the option has an inherent lag, but is enhanced by time, volatility and relationship of strike to common.
the other day (yes pal) i rolled some cmgi jan100 calls (very deep) to 02, stock at 200, prem at 131....stock sold off, settled around 194, prem down to 121.......-6stock/-10 option.
if there is a great deal of interest in an option, it is no different then the supply/demand that moves the price of the common. remember qcom dec500, some paid $1+ for a less then a month, with the common out by about 125 points. if somebody wants to buy, a seller will appear if it is advantageous to the seller.
qcom still too overbought for close strikes/expirations....athm puts are very,very attractive.
gonna run, gonna start buying idc tomorrow...the next qualcomm!!!
ciao bella...... |
