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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Bill/WA who wrote (5930)1/24/1999 11:59:00 AM
From: ViperChick Secret Agent 006.9  Read Replies (2) of 122087
 
Bill
I posted your message here not because it is an options thread
but because this thread shorted DBCC..when DBCC started running up some people felt some pain
I mentioned one alternative was to buy puts..but that you had to deal with time erosion, volatility premium etc...
and your example is a PRIME example of how you can get screwed on options

Tom wrote me and told me that this particular put is undervalued now not when bought according to the option parameters that he put in to his option calculator..using the Black Scholes formula I am sure

sometimes options STAY undervalued..sometimes not....so I will be watching that particular put with interest

I know Burke sometimes buys these options that are out of the money
but I think you can have more potential to be screwed on the ones further out of the money...although in the moneys can get you too
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