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To: Neal davidson who wrote (70944)	1/11/1999 3:28:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 186894

Neal, Mathematically, when a call option is about 8-10 months before expiry, its time premium decays in an exponential manner. Thus, if I were you, I would try to make an educated guess as to "when" (during the next 2-3 months) might be the the optimum time at which you could unload your option. If you plan to exercise your option, it would be a totally different story. I generally use options as a trading vehicle. A few times in the past, my short puts were assigned to me, but they ultimately turned out to be highly profitable. Regards, Ibexx

To: Neal davidson who wrote (70944)	1/11/1999 7:38:00 PM
From: PeakClimber	Respond to of 186894

Dunno what Ibexx may say, but I trade leaps almost exclusively as a stock proxy for leverage. Typically, approximately 9 months before expiration, I roll them over into higher strikes if they're deep in the money so I recover the principal and a fair bit of the profits. If they're dogs i.e. deep under water, I just let them ride knowing that I might lose the whole thing but take a chance anyway. I'd recommend reading McMillan's Options as a Strategic Investment for some good info on valuing leaps. Lalith