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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Lillie who wrote (20984)	12/20/2002 1:45:56 PM
From: Softechie	Read Replies (1) \| Respond to of 30712

$SOX dropping below 300 again...

To: Jeffrey S. Lillie who wrote (20984)	12/20/2002 2:01:05 PM
From: mishedlo	Read Replies (1) \| Respond to of 30712

The percentage of the options price dedicated to premium rose significantly the farther out you went. That would be the case but it falls off the deeper ITM you get. The case for leaps is the ability to just hold the damn things. The Jan 1200 PUT is 303 points. The DEC 1200 PUT (next year) is 308 points. 11 months more time at a premium of 5 points. Of course that is on the assumption that one can and will hold these for a long time. Even if one changes his/her mind, there is no cost. Each of those will appreciate almost point for point on a rise and fall of the spoos. Between the two I would just buy the extra time and be done with it. If you are buying barely ITM puts, you have a point, a big point. It all depends on how deep ITM you get. M