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To: Chas who wrote (42678)	2/2/1999 7:42:00 PM
From: Land_Lubber	Read Replies (2) \| Respond to of 53903

I also sold all my puts at one point today, but later bought them back (even more, actually). Strangely, the ask price on the MUNLs (Feb 60 put) was 3/4 both just prior to 1300 EST and just prior to the close (1600), although the underlying was about $3 HIGHER at the close (75 vs. 72)! This is the opposite effect to time value loss, since the option is worth MORE at a later time, despite a significant UNFAVORABLE price move. This part of the option price (in addition to the time value and intrinsic value) is due to the "implied volatility." But why did the implied volatility change so suddenly between 1300 and 1600? Will this higher implied volatility still be priced into these puts at the open tomorrow, or is it likely that the puts will open lower even if the underlying stock opens unchanged? Anyone know? Land_Lubber