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E.Central MN | Its not a certainty that the price of your put options will increase just because the market goes down. Part of the price of the option is the time value or the "insurance" factor that something could happen between now and option expiration. As it gets closer to expiration that "insurance" value gets worth less which is usually reflected in a decrease in the value of the options. That can change if the volatility is increasing, but typically the further out in time the higher the time value portion of the price of the option. | |
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Looking at 2011 prices
