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To: SecularBull who wrote (2356)2/8/2000 9:00:00 AM
From: edamo  Read Replies (1) | Respond to of 8096
 
lof..."they do trade down"

purely on time value,.......but, otm's trade up based on movement of the underlying, the historical volatility and any aberration in the implied volatility...

the point is that if an otm was "pure time value" as bp likes to believe, then once otm, they would never increase in value until atm or itm....

not so complex to understand!