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To: Eylon who wrote (8233)	3/20/2000 10:43:00 AM
From: Uncle Frank	Read Replies (2) \| Respond to of 35685

>> The most you can make is the total time premium. There's more to options than meets the eye, Eylon. Take a look at the following rtq ask prices for 2 qcom ITM options: yqjae (Jan 2002 125 strike LEAPS calls) = 53 3/8 wijat (Jan 2002 100 strike LEAPS calls) = 63 1/8 Both options are in the money. There is a $25 difference in their intrinsic value. But there is only a $9.75 difference in their ask prices. So where did the $15.25 go? Once you answer that question (hint: review the Black-Scholes Equation and determine the impact of implied volatility on what you are referring to as "time premium"), you'll begin to understand Voltaire's comments. uf