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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (4389)	9/29/2000 7:54:05 AM
From: edamo	Read Replies (2) \| Respond to of 65232

freeus...."options action" it appears you are buying calls when the volatility is higher then normal....this is typical as the underlying surges. as the stock settles a bit, even with added upward movement, the volatility normalizes and the option value decreases. the converse holds true for a down trending issue. the key to option trading, and it is a trade as it has a finite life, is to capture the volatility to your advantage. in fact you can buy an option or short an option at a point that even if the stock moves against you, the premium will move beneficial to you. timing is everything with options....buy calls/sell puts when underlying oversold, buy puts/sell calls when overbought. to do otherwise increases the risk of premium loss...