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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?


To: cfoe who wrote (527)5/10/2001 8:53:12 PM
From: BDR  Respond to of 5205
 
<<However, what I began to notice is that when the stock falls, the further-out option prices fall more slowly than the near-in ones. >>

I take it you haven't read TRFM? He explains why this is so.

TRFM = That Revered Fellow McMillan

edit - The difference in movement of near and far options (with respect to time and also strike price) is the foundation on which spreads are built.