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Strategies & Market Trends : Options-Technical analysis -- Ignore unavailable to you. Want to Upgrade?

To: browser who wrote (32)	10/12/1998 5:41:00 PM
From: Jeff Mizer	Read Replies (2) \| Respond to of 296

Browser- Any luck today ? I sold those 7 CSCO calls at 4 1 /2 = $750 profit Bought 5 AMZN Nov 80 puts at 6 at end of day they were at 7 but held them over for tomorrow -- AMZN crashed at the close and I hope to be able to sell for 8-9 tomorrow. A while back I read someones quote about Bears and Bulls making money and pigs getting slaughtered- I think that change in philosophy has been my turnaround- today went into the black for the first time since the week I started ! J

To: browser who wrote (32)	10/12/1998 6:34:00 PM
From: browser	Respond to of 296

Caroline! is this why aud is up? www1.zacks.com always was under the impression not to hold options during earnings report! why,i don't know!!

To: browser who wrote (32)	10/13/1998 6:45:00 PM
From: Caroline	Read Replies (2) \| Respond to of 296

if only 6 wks remaining how come time value so high? Time value is based on six different factors, only one of which is "time." so how do you calculate how much the stock has to rise in order to breakeven since you have so much intrinsic value? Let's take an in the money call. Stock is $50, strike is $55, bid x ask 8.50 x 9.00. The intrinsic value is $5 The market wants $9 The difference between ask and market is $4, that's time value. ps: is there a formula on how to calculate time value so you can tell how much the option is actually worth before you buy since time value decreases as the days of the option get shorter? Calculating time value and calculating how much an option is worth are actually two different things. Our stock at $50, strike @ $55, ask price on call at $9 has a "worth" of $9 -- $5 is intrinsic, $4 is "time." This is actually an extraordinarily complicated subject, and I'm simplifying it greatly. Much of it is way over my head. Suggest you play here: numa.com Stock: 50 Strike: 55 Dividend: 2.6 Interest rate: 4.5 Maturity: 2 months click: implied volatility and enter: 9 in option price click: call click: calculate Voila: implied volatility 134.02 Poke around the site, there's lots to learn. CB