To all, Normally, I wouldn't mention short term pricing in put options, as I swing for the fences. But there has been some false information spread by Intel monks on this thread, and some of it had to do with how you can make money in options. Just want to point this out while the prices are fresh.
Intel April 85 puts are up 50% since I bought them. That is on the bid side, so I could actually sell them there. Novellus puts are up more than 50%. Micron and CDWC puts are both up more than 30%. I am still far out of the money on all these stocks.
No, I don't plan to sell them at these prices. I am shooting for quadruples or better, as usual.
The only reason I point it out is that more than one goof has mentioned that Intel had to fall from 121 to 85 for me to make money on the options. This is a common neophyte trader's misconception. What did these folks miss, other than a life? <G>
Options are fungible. They have a life and pricing of their own. Yes, as they approach expiration date, pure premium dries up and intrinsic value is the key. But before than, moves in the direction of strike price, even though they still may be 30 points out of the money, can move the value of the options up a lot.
Again, it is no big deal. But when folks put out misinformation on the thread, I like to show a concrete example of their ignorance when one pops up. Especially if I don't like them. <VBG>
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