| zhang242463 Tue May 29, 2007 1:00 pm |
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CEI arbitrage Can anyone explain if it is better to get
expiring OCT 07 striking 22.50 is 60c (up from 35c days ago)
expiring OCT 07, striking 0.10?
how should we evaluate options? time value etc? |
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| Mosguy Wed May 30, 2007 8:22 pm |
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I dabbled in options when I first got into investing. Options trading is a bet on volatility, basically. As for how we value them, as value investors, we don't. Its a directional trade a kin to gambling on where the price of a stock is going to move in the near future. Value investing brings nothing to the party when in comes to that.
Sorry for being no help :-) |
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