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Strategies & Market Trends : Ask DrBob

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To: galactic1 who wrote (2553)8/30/2000 3:13:04 PM
From: Louis V. Lambrecht  Read Replies (1) of 100058
 
galactic - that is why you better sell puts.

You receive $75, and your risk is to be obligated to buy SDLI at $390.
In options, you sell volatility and theta to those who are willing to pay. But not to me (anymore).

Having to buy SDLI at 390-75= 315, would put the price of JDSU at $83. Not saying it won't happen (was at 73 1/4 in Apr-May), but seems a bargain to me.

If there is a seller: OI is about 4000, but there is no volume (no trade). Is the crowd becoming wiser?
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