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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Kubisz who wrote (16675)	4/5/1999 11:44:00 PM
From: Larry Newhook	Respond to of 37507

I find options a little scary, but I'm interested in them. Would you mind explaining the terms theta and delta to a newbie? Thanks for any help you can give. Sure, delta and theta are the measures (1st derivatives) that indicate the change in the price of an option due to changes in the price of the stock and time until expiry respectively. If a option has a delta of .50 then if the stock rises by $2.00, the option should increase in value by about $1.00. Theta is a measure of time decay. Larry.