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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: chris714 who wrote (15907)	7/18/2002 11:35:30 AM
From: rolatzi	Read Replies (1) \| Respond to of 36161

Loss of option time value kills When I buy options, I choose expirations of six months out. I also choose slightly in the money strikes unless I really have a strong belief in the direction and magnitude of the impending move. I sell or roll over the options at three months. This is the best compromise, for me, between bang for the buck and loss of time value. At three months something like 90% of the time value remains. It's been my experience that longer lived options have more time to go up and down from volatility changes. I also pay attention to volatility and try to buy options at low volatility and sell them at high volatility. Ro