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To: donald sew who wrote (1471)12/12/1998 8:50:00 AM
From: Haim R. Branisteanu  Read Replies (3) | Respond to of 99985
 
donald, would like to know if you ar buying or writing options on the OEX.

I have not traded index options for a long time but my recollection is that the time premium in volatile markets evaporates quite quickly due to the high implied volatility.

Also the pricing of option in general are anticipatory e.g. if a turn in certain direction is sensed, the premium changes sharply accordingly. Those changes had helped me to guess movement in stocks many times.

Is this phenomen present also in index option?

Haim



To: donald sew who wrote (1471)12/12/1998 10:48:00 AM
From: Vitas  Respond to of 99985
 
Donald, ooops, I forgot to put the >g< in. As to options, they are a
lot tougher to trade, especially the equity ones, where, they just don't
want to give them to you between the spread. Being early is the
only way to go.

Cheers,

Vitas