Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: HG who wrote (5011)	2/26/1999 8:43:00 PM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 19700

As time passes, the underlying security has less time to change price. Hence, an option with more time before expiration would be worth more than an option with less time. During the first half of an option's life, it loses less than one third of its value from time decay. If you're an option buyer and considering time decay alone, your preference should be to buy longer-term options. If you're an option seller, your preference should be to sell shorter-term options since there is more profit to be made just by dint of the shorter amount of time remaining until expiration. BTW, may I ask how you came to be so informed about options? Best regards, Mark A. Peterson