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Re: blasher post# 5598

Monday, 06/12/2006 12:10:46 PM

Monday, June 12, 2006 12:10:46 PM

Post# of 7711
The volatility is what I was thinking about. If LU hits your price target by mid-November, the '07 Calls will have moved more than the '08 Calls. Thinking about it, I suppose when you sell the '08s, you will be selling the time value (Theta?) back so there is no harm, other than the missed runup in price. Small price to pay for the extra security of the longer timeframe.

Good explanation. Thanks.

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Beware the Jabberwock, my son!
The jaws that bite, the claws that catch!
Beware the Jubjub bird, and shun
The frumious Bandersnatch!

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