Ascend Communications (ASND) Message Board

STOCKTALK

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.

Technology Stocks : Ascend Communications (ASND)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: rag2rag who wrote (39126)	3/14/1998 11:22:00 AM
From: Glenn D. Rudolph	Read Replies (2) of 61433

It seems if the Open interest is high, the day of expiry would also be the best day to buy calls for the following months (April or later) and the worst day to sell covered calls. Comments ? jag-dish, The OI for March will have no affect on the option premium for April expiration. It is a proven fact that the time premium decreases significantly between the Friday of expiration and the following Monday. The near month time premium drops an average of 20% over that weekend. Therefore, if one writes options, they should do that the Friday of expiration. If one buys options, they should do that the following Monday. This assumes the stock opens at around the same price it closed on Friday. Observe it through a few expirations:-) Glenn

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next