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To: SJS who wrote (121)5/6/1998 8:06:00 PM
From: Timelord  Respond to of 14427
 
Swordfish - Thats no the password, I justa change it...<g> eom.



To: SJS who wrote (121)5/6/1998 11:10:00 PM
From: Thean  Read Replies (2) | Respond to of 14427
 
I invited Steve over here because I think Steve would be great for some option opportunity here. I have some option question first of all. Is there a formula for calculaing an option premium? If not, how about his for a rule of thumb:

4 weeks to go before option expires - expect 10% premium
3 weeks to go before option expires - expect 7.5% premium
2 weeks to go before option expires - expect 5% premium
1 weeek to go before option expires - expect 2.5% premium.

If the stock is volatile, add 2.5% max accordingly.
If stock is a sleeper, substract 1.5% accordingly.

Does premium calculation differ if the stock prices are between
5-10
10-20
20-30
30-50
50-75
75-100
100-150?

I have followed stock trading in between 10-30 and arrive at the above rule-of-thumb.

bw - your thought on the thread is right on. We have known each other for at least a year now and basically know where each other stand. With our low key presence I think we can put better energy into making money than defending one's position.

Asia continues to be weak tonight. I think I'm going defensive tomorrow and preserve cash as my priority. When is Dell going to annoucne, Teddy?