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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (3130)	9/3/1998 9:52:00 AM
From: Patrick Slevin	Respond to of 44573

<Yesterday I sold the Sep 490> For some reason I thought you were deeper in the money. Because I rarely look at OEX I thought the index was around 510, not the high 490s when you sold them. At this point everything is time value. When you sold the 90s at 17 and the index was at 497, say, the premium was 10 bucks. The rate of change in the index and the rate of change in the value of the option can be calculated to determine the Time-Decay which is "Theta". As volatility increases Theta rises and vice-versa. I have to get moving, have a good day.