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Re: nwsun post# 103450

Saturday, 01/25/2014 10:15:26 AM

Saturday, January 25, 2014 10:15:26 AM

Post# of 147282
Near money or out-of-the-money tend to increase faster in price because they are a more risky investment which demands a better return.

Once the stock price rises and the near money become in-the-money the option tends to move approximately dollar for dollar with the underlying stock.

In the money options are less volatile than their out-of-the-money counterparts, but you pay more for the option to have that lower risk.
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