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ASimEE

01/25/14 10:15 AM

#103453 RE: nwsun #103450

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.