The Options Box Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Options Box

QQQ 619.43

-0.2%

Dec 30 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Poet who wrote (9730)	2/27/2001 2:37:08 PM
From: hobo	Read Replies (1) of 10876

Re: NTAP On Feb 21st. I wrote 20 call contracts (March 40) when NTAP was around 34.5 (+/-), I was aware of the support at around 30 that you mentioned. Premium received was 2.125. I figured that time decay plus the downward pressure of late would give me at least one point for my efforts. (i.e. buy it back at 1.125 or less) Yet, I have seen NTAP as low as 29 1/16 and the lowest buy back was 1.25 (I almost took it but I changed my mind, given the fact that selling pressure for the overall market has been increasing). Premium has been back to the 2.25 level when NTAP has been back at the 33.75 plus level (even today, although the printed high has been only 1.75 on the premium and 33.75 on the underlying) During this period of time we have experienced an increase in volatility which I am crediting the strength in the premium to such increase. As I am writing this... I am looking at the NDX & QQQ charts selling off..... yet NTAP seems to be holding, so perhaps at this point I should take the .6875 profit that the market is giving me and call it a 1/2 victory. (buying it back for 1 7/16 for a .6875 profit or 32.35 % News flash -g- I closed the position as I wrote this: @ 1.4375 (1 7/16) Price of the underlying when executed was 32.5 as soon as I bought it back, NTAP went back up to 32.875 and the ask went back to 1.5 Sooooooo. Thanks for the question otherwise I would still be stubbornly holding off for my price. Using the OptionScope from metastock AT the time I sold the call at the above values Volatility shows as 113.2385. Then inputing the values at which I bought it back (adjusting for days left to expiration), Volatility shows as 129.4876

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next