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To: waverider who wrote (27336)4/18/1999 9:20:00 PM
From: Ibexx  Respond to of 152472
 
Hello Diamond,

Oh yes, volatility has everything to do options premium. And even that being factored in, MMs anticipation of market's direction sometimes significantly added to, or subtracted from, the option prices. The latter are not always related to the (underlying) stock prices in a linear sort of way. Black-Scholes equations is certainly not cut and dry.

Regards,
Ibexx

PS: In the midst of a market turbulance, I prefered to sell puts to capture the rich premium, rather than to buy calls which are extremely costly.