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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (48)	8/14/2001 10:31:07 PM
From: William	Read Replies (1) \| Respond to of 1064

Dan - You keep saying PUTs but all your numbers look like calls. What's up? William

To: Dan Duchardt who wrote (48)	8/15/2001 9:16:39 AM
From: edamo	Respond to of 1064

dan..."implied volatility" i've found over many years that this factor in the pricing of the contract that many option traders fail to closely monitor...if you look at a black scholes calculation, this is one component that is assumed...historic volatility is known, as is time...it's the comparison real time, which is a dynamic, of what appears to be a change caused by the implied or perceived volatility at the point in time....you showed this in brcd...that's why i espouse getting intimate with few stocks, learn their nuances and take advantage of a situation, the more volatility you can capture allows a cushion should you be wrong in your direction call, and as i have demonstrated you can actually turn a profit by being wrong with the help of the anomaly... ed a.