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Technology Stocks : CMGI What is the latest news on this stock?
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To: HG who wrote (5011)2/26/1999 8:43:00 PM
From: Mark Peterson CPA  Read Replies (1) of 19700
 
As time passes, the underlying security has less time to change price. Hence, an option with more time before expiration would be worth more than an option with less time.

During the first half of an option's life, it loses less than one third of its value from time decay. If you're an option buyer and considering time decay alone, your preference should be to buy longer-term options. If you're an option seller, your preference should be to sell shorter-term options since there is more profit to be made just by dint of the shorter amount of time remaining until expiration.

BTW, may I ask how you came to be so informed about options?

Best regards,

Mark A. Peterson
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