Comments on: Why An Option is NOT a Good Investment http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/ Mon, 06 Sep 2010 20:31:20 +0000 http://wordpress.org/?v=2.2 By: rvfhzec lpsya http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/#comment-8229 rvfhzec lpsya Tue, 01 Jan 2008 21:38:46 +0000 http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/#comment-8229 rmodikfzq hdvlrzbct xskgdfnju ytqeu apymvrtoq ipurm otulrshzp rmodikfzq hdvlrzbct xskgdfnju ytqeu apymvrtoq ipurm otulrshzp

]]> By: Isreli speculant http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/#comment-5297 Isreli speculant Tue, 18 Sep 2007 14:40:49 +0000 http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/#comment-5297 Thanks for commenting. I wasn't that specific as you comment. The key idea though to remember is that options lose value with time. As options have a lower rational bound, as time progresses to expiry, they converge to their intrinsic value and lose their time value. This is true for both put and call options. Thanks for the comments. Thanks for commenting. I wasn’t that specific as you comment. The key idea though to remember is that options lose value with time. As options have a lower rational bound, as time progresses to expiry, they converge to their intrinsic value and lose their time value. This is true for both put and call options.

Thanks for the comments.

]]> By: My Trader's Journal http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/#comment-5295 My Trader's Journal Tue, 18 Sep 2007 12:08:39 +0000 http://israelispeculator.com/blog/why-an-option-is-not-a-good-investment/#comment-5295 Good post overall, but I think your comment under "losing value with time" should say "...this is because the option has less probability to have a large move in price as time progresses." Finishing in-the-money or out-of-the-money depends on what the strike is and theoretically there should be close to the same number of strikes selling ITM and OTM. Additionally, for every put that is ITM, the call at the same strike is OTM and vice versa. Good post overall, but I think your comment under “losing value with time” should say
“…this is because the option has less probability to have a large move in price as time progresses.” Finishing in-the-money or out-of-the-money depends on what the strike is and theoretically there should be close to the same number of strikes selling ITM and OTM. Additionally, for every put that is ITM, the call at the same strike is OTM and vice versa.

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