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Re: None

Monday, 08/27/2012 9:21:58 PM

Monday, August 27, 2012 9:21:58 PM

Post# of 16750
FWIW, for option holders of 2014, I see 'deep in the money' scenario playing out. What this would mean is for every
point change in the underlying asset's price, there will be an equal and simultaneous change in the price of the option, in the same direction.

It will be like investing in the underlying asset, except the holders will have the benefits of lower capital outlay, limited risk, leverage and greater profit potential.

I am not sure what will happen to the Time Value though, as that's one of the components to the Option Premium. Any thoughts from Options gurus would be appreciated. TIA