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Technology Stocks : CMGI What is the latest news on this stock?

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To: HG who wrote (5002)2/26/1999 6:27:00 PM
From: Eric  Read Replies (1) of 19700
 
you are right about the time premium ... i meant to say in the money options fetch higher prices ...

for out of the money options:
option price = time premium
for in the money options:
option price = time premium + abs(mkt price - strike price)

the rational in playing in the money options is that for the same amount of price movement in the underlying stock, in the money options move more in absolute dollar term ... of course, you have to commit more money for in the money option plays ...
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