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Posted on August 28, 2008

Got forwarded this email from Minyanville yesterday.Wanted to see if you could clarify an aspect of options premium-decay. I realize the adage you should never short a dull tape. And comprehend the the point Dr. Najarian made about the possible merger-acquisition of exm & drys. What are the more complex dynamics at work that would cause a drys sep. 60 put (+dqrul) that sold for $1.15 last thursday go for .50 today when the price of the underlying equity drys is at the same price it was last thursday? I realize the effects of weekends on options at least conceptually. Obviously the earings rele...

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earnings , options , volatility