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Strategies & Market Trends : Options

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To: Jill who wrote (2853)2/13/2000 4:49:00 PM
From: edamo  Read Replies (1) of 8096
 
jill...jdsu leaps?

the supply and demand will spread over a much wider choice of strikes and expirations, which should be beneficial to put sales, if the stock is neutral to up trending. typical put buyer in these markets tends to look at a long term trend, that is why the septembers have such a high volatility factor. question:
if i am a buyer, would i not want as much time in my contract, providing i don't have to pay inflated premiums?
just think how you would buy a leap call...the put buyer thinks along the same lines....most buyers of the short term have a very low cost on the stock, so they are willing to pay 40 for a 200 strike (160 adjusted) which means they currently own below 160, or are just speculators. the rapid rise, much like qcom accounts for the hefty premiums.
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