SI
SI
discoversearch

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.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Win-Lose-Draw who wrote (138795)12/15/2001 7:20:25 PM
From: energyplay  Read Replies (1) of 436258
 
You are buying the time value of the option and the volititlity of the underlying QQQs. When you are 10 points away, much of the time value is absorbed in the difference between the current price and the strike. The price is also a factor of supply and demand -

how many want to buy QQQ puts, how many want to write (which is also a factor of how many are short)

Volitility tends to figured out by computer algorithms, so during expiration week (like next week), volitility premiums drops because of many stocks 'pinned at the strike' This can be a good time to buy longer dated options, since they may be mis-priced slightly lower.

Selling puts is usually good during earnings warning time (just before the end of the quarter )

If you buy a little longer (May ?) you will be able to include April 15 tax deadline - frequently lots of selling the week or so before April 15.

Best of Luck
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News