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To: PerryA who wrote (21080)	9/23/2000 11:27:09 AM
From: IceShark	Read Replies (3) \| Respond to of 436258

Once options go deep in the money, especially front month ones, the premiums just disappear as a normal course. There are several reasons for this, but just accept it as a fact. It is a good idea when playing a specific option to see the falloff and rise in premiums based on where the underlying is to a given strike so you can plan exit strategies. Also, due to this action some people that want to actually short a stock will instead buy poots that are in the money to varying degrees. There is little premium cost and the maximum loss if disaster strikes is fixed. The down side is the bid ask spreads can get pretty wide and you have a clock running on the position should you want to try and weather the storm. I don't think this is such a hot idea, but to each his own.