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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (96981)7/24/2002 4:03:50 PM
From: Tommaso  Read Replies (1) of 132070
 
I have to say I really love my DJX LEAP puts. They are still selling at a negative time premium, though it has narrowed from 10% to about 2%. As they move on towards expiration date (December 2003) they ought to develop a positive time premium of as much as 10%, meaning another 12% move in my favor quite independent of their intrinsic value. The action today has only knocked them down about as much as the percentage rise on the Dow, and any resumption of the market decline is leveraged.

Of course, with perfect foreknowledge, I might have sold them yesterday and bought them back today.
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