Replies to post #27829 on Options Wonderland

[3xBuBu]

because of time decay,
you bought your way OTM WM Put on 6/12/08
you are losing time premium fast when it is approaching OE,
WM Jul 2008 2.5000 put (WMSI) is too way out of money, most likely will be expired and worthless by July OE









My posting is for my own entertainment, do your own DD before pushing your buy/call button

[3xBuBu]

ITM Put WM Jul 2008 6.0000 put (WMSE)is a different story
therefore, choosing the right strike is an art :-)





My posting is for my own entertainment, do your own DD before pushing your buy/call button

[leemalone2k3]

If you think WM could close above 5.00 on expiry, you could sell 100 5.00 puts, making the trade into a vertical spread, and bring in that premium to make a profit. But if it doesnt close above 5, you will take a much larger loss.