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Strategies & Market Trends : Swing Trading With Options

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To: Dan Duchardt who wrote (56)8/23/2001 10:44:37 PM
From: Teresa Lo   of 88
 
I think the implied volatility was higher going into the FOMC meeting, and therefore the time premium was slightly inflated. Once implied volatility dropped, time premium collapsed. It's like the old OEX puts that people love to buy when the market goes down, but if implied volatility moves up, the put buyer might well be right, but still make no (or even) lose money.

Teresa
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