Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 126.42

+2.8%

Dec 19 9:30 AM EST

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To: jmac who wrote (138252)	8/3/1999 8:01:00 AM
From: GVTucker	Read Replies (1) of 176387

jmac, RE: Then, can someone tell me what DELL August 40 calls are at 2 3/8. You can play the upside on DELL for 2 3/8! That's insane unless someone knows that DELL just isn't going to go up. I don't get it. Does anyone? Actually, that isn't so cheap. If you measure what the implied volatility for DELL would be using that call price, the implied volatility would be in the 50's. Next, I looked at the actual volatility of DELL over the past couple of months, which is about 46. In other words, theoretically speaking, the call option was actually overpriced. This is rather logical, though, when you realize that earnings will be reported before expiration, which would tend to make the stock more volatile.

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