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Technology Stocks : Intel Corporation (INTC)
INTC 48.23+2.3%Feb 11 3:59 PM EST

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To: Kelvin D. Nakamichi who wrote (8429)1/15/1997 11:44:00 AM
From: Cary Knoop   of 186894
 
Before a company reports the earnings the implied volatility of
the options are generally higher than usual.
After the earnings if the stock does not go up or down significantly
the implied volatility decreases rapidly to normal levels.
This is why it not always pays off to for instance buy both a put and
a call just before earnings are released. Even when the stock price
changes a fair amount on the next day you still would not make any
gains because of the implied volatilty loss.

Cary
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