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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (2275)	2/5/2000 12:23:00 PM
From: Jill	Respond to of 8096

The further out you go, the more it costs, as you are buying time. I don't mind that as I buy a restful night's sleep. Poet on the other hand trades 'em on the same day, same hour sometimes! She is intrepid.

To: Bridge Player who wrote (2275)	2/5/2000 2:50:00 PM
From: edamo	Read Replies (1) \| Respond to of 8096

b.p...."all of the option price reflects "time premium" " "time premium" is a minor, calculable component of an otm strike...the major, or variable component is "implied volatility".....if it was just "time" it would be no fun... the implied volatility is the component that gives rapid price changes in the premium in a fast moving or momentum issue. the idea of option trading is to capture any inflated implied volatility, which is yours to keep when a normalization of volatility occurs.