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Strategies & Market Trends : Tech Stock Options

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To: Electric who wrote (30200)12/4/1997 8:02:00 AM
From: Patrick Slevin  Read Replies (1) of 58727
 
As far as option premium I have a book I'm trying to stumble thru that describes, amongst other stuff, how options get priced.

Market VOL (Volatility) is responsible for the premium. I used to download option pricing each day to try to get a feel for "what swings cause what moves" and what was normal for what time for what trend etc.

As you might have guessed by now, I would have needed a Cray to crunch those numbers....I gave up.

But what I alluded to is easy to see, particularly as expiry approaches. Like I said yesterday....the options I pointed out are half of the VIX (Volatility Index). The OEX advanced yet the only ones who made money are the people who wrote those options.
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