SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Epinephrine who wrote (103881)4/11/2000 4:16:00 PM
From: Road Walker  Respond to of 1571648
 
E,

Yes, you can sell them if the underlying gets back to the strike price or not. There are ways to calculate the correct time premium, it has to do with the volatility of the stock, but it really doesn't matter. One of the things that will happen is that after earnings are announced, the time (volatility) premium will decrease very quickly, as there will be more certainty in the direction of the stock. On the other hand, tommorrow the premium should increase as the day goes on and as the uncertainty of the future stock price increases.

John