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Strategies & Market Trends : WR's Momentum Trades -- Ignore unavailable to you. Want to Upgrade?


To: Wayne Rumball who wrote (8627)10/28/2000 7:55:04 AM
From: ChrisJP  Respond to of 11130
 
Hi Wayne,

Yes my example was skewed from the option buyer's perspective, not the option seller's. I've found that's the best way to explain the appeal of options.

You are right, when the premium is outrageous (like 30%), and the markets are in a volatile trading range, it tips the scale to the advantage of the option seller.

Chris