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To: At_The_Ask who wrote (67482)2/26/2003 4:09:21 PM
From: jjstingray  Read Replies (2) | Respond to of 209892
 
If that rationale was correct, then why wouldn't the preimium of the put shoot up when it falls. In this case according to your theory, premiums on puts goes up when the stock goes up, but today it did not come back when the stock dropped $2.00.

Can you explain that?



To: At_The_Ask who wrote (67482)2/26/2003 4:32:24 PM
From: pvz  Read Replies (1) | Respond to of 209892
 
I've noticed the same on a couple of occasions. An outright short would have worked out much better in retrospect.

I'm beginning to think buying puts might actually be better a couple of days after a spike high, once the underlying is showing some weakness, even if that seems totally counterintuitive.

I think it has everything to do with the volatility surrounding the spike, and nothing to do with the broker.