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Biotech / Medical : IDPH--Positive preliminary results for pivotal trial of ID
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To: I. Luttichuys who wrote (822)5/7/1997 9:24:00 AM
From: Vestor   of 1762
 
That's as good an explanation as any I've come across, on an "instinctive" level. The near-to-expiration calls are riskiest but seem much more responsive to price changes in the underlying. The further out calls are safer, but the trade-off is that they have more of a built-in premium and are a little less responsive to price changes in the underlying.

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