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Technology Stocks : Keane The leading y2k service provider

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To: Mark T. Heath who wrote (248)12/24/1997 11:34:00 AM
From: tech   of 1316
 
I usually write the calls on most of the stocks I own, but I did buy lots of call the day the market got slammed in Oct.

I bought Dec. and Jan. calls on GTW, CPQ, BMCS, and I bought the Feb. 30 calls on KEA. (KEA's price was 27)

I paid 2 3/8 for the KEA call and I still have them.

they are trading at 8 3/4 to 9 1/8 currently.

Options are funny things, lower the volatility on the stock, the lower the premiums will be on the options. (the stock is predictable and the option traders have little worry)

The higher the volatility and the higher you have to pay to buy the options due to the fact that the traders are more exposed to getting caught in a sudden move up or down.

I think we should see KEA's premiums really start to get juicy once the stock breaks above $40.
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