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

To: longdong_63 who wrote (2285)	8/29/2000 3:03:30 PM
From: Louis V. Lambrecht	Read Replies (1) \| Respond to of 100058

ld - front/back month options Not enough information on that. At first sight (logical), sellers would profit from the decrease in open interest with the change of the calendar month, as the premium would loose more "greeks". Buyers would pay less "greeks" after the change of the calendar month. But that means taking a decision based on one week of uncertain direction of the market. So, my "logical" answer would only apply in a sideways market. I would say: if you are a bullish put seller, sell now. Can't help much, as my options horizon usually is 2 to 7 days away. I like expiration weeks. Pitty there are only 12 of them each year. LOL.

To: longdong_63 who wrote (2285)	8/29/2000 3:08:44 PM
From: virtualsignal	Respond to of 100058

LD for theta's sake (very witty of LVL lol) did someone let the greenie cat out of the bag? The prospect of an interest rate hike is being rethought (sorry t2k) following the eco data showing a 7-year high in monthly new home sales and near-record high in consume confidence, so USUs r selling off. Plus now the pressure will be on option prices given that there will be an extra day of decay cuz of Laboring Day. Da k could happen even more if the money gets jitters before Fday's unemployment. Look for option prices getting cheap in the near term (like u said), but then look for the mad scramble to buy'em b4 expry. JAG