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To: ViperChick Secret Agent 006.9 who wrote (74631)10/26/1998 3:02:00 PM
From: Lee  Respond to of 176388
 
Lisa,..Re: because they strip the premium as it settles...

This is a common occurrence in bond options. After any run-up/down and bonds reverse, premium evaporates. That's why I sell calls (if long) in big or strong up moves and opposite for puts. That way I've managed to get out before the volatility disappears. (This is based on years of holding too long)<VBG>

Regards,

Lee