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Options | JAN 2002
The Third Dimension Of Option Trading by Don A. Singletary
The Third Dimension Of Option Trading by Don A. Singletary Here’s how you can profit from trading volatility. Sometimes when you purchase an option, you might see the underlying futures contract move in your favor, perhaps enough to overcome the time decay of the value of the option, and then you might find yourself bewildered that a profit has yet to be realized. Other times you may be awaiting time-decay erosion, only to find it is a much slower decay than anticipated. More often than not, these situations are due to a change in volatility.
by Don A. Singletary
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