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Pastimes : QQQ & DIA - chat & chart

QQQ 623.23

+2.2%

Nov 10 4:00 PM EST

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To: Chris McConnel who wrote (489)	4/16/2003 6:53:54 PM
From: Jon Khymn	Read Replies (1) of 795

Yes, for example, Sept. 29 put was 3.60 this morning with QQQ price 26.45. So without considering other factors, 29 put was in the money (29.00-26.45 = 2.55) Therefore time premium was 3.60-2.55= 1.05 Since Sept put is roughly 5 month away, 1.05 / 5 = 0.21 Which means, if QQQ stay at 26.45, option buyer will lose 0.21 per month. Which is less than 1% premium per each month (0.79%), compare to other stock option premium QQQ option premium is very reasonalble...

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