No trades today.MS closed the day at $14.76.
Option positions in profit at +$4,105 unrealized PnL. Will continue to hold and may liquidate some prior to expiry Fri 21-Oct.
Remarks :-
Fed cut 50 interest from 1.5% to 1.0%.... one of the lowest that I can remember.
Thu and Fri likely to see more sell down as funds trying to close their books for 2008 and write off their loses. Funds will start buying again next week in early Nov at low prices to have a good start for the year 2009.
Notice that the further away out-of-money price changed that largest when Volatility dropped.
e.g. MS Implied Volatility dropped from yesterday 219% to today 154%. The option MS-Nov-5.0-PUT dropped the largest in price among the other stike-price options from $0.30 down to $0.20, a 33.33% dropped (eventhough the MS closing price dropped from end-yesteday $15.10 to end-today $14.76).
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