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.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: the options strategist who wrote (9148)11/23/1998 11:20:00 AM
From: backman  Read Replies (2) of 14162
 
someone please explain the "market mechanics" of the following:
friday, I'm considering buying DEC160 puts on IBM...overbought, near top of BB...stock is trading ~161, puts are 2 3/4*2 7/8.
today, stock is up 1 point, and the same puts are 3 1/4*3 3 3/8.

my thinking is: price goes up, puts should be less expensive, and time component decreases cost also.
is there a basic flaw in my thinking, or do markets do what markets do?
david s
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext