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WALL STREET SECTION

Option Premium Is Very Expensive On Google - Consider Selling Premium

Posted: Thursday 26 January 2006 - Wall Street Section

Don't even think about doing this trade unless you fully understand options and the importance that volatility plays when setting premiums.

The recent movement in Google's share price has pumped up volatility to levels that make it very attractive to sell short (the options not the stock) via strangles.

Check out this excellent and well thought out article for more details on the ins and outs of the trade.

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