Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (44980)	12/8/1999 9:19:00 AM
From: Madharry	Read Replies (1) of 94695

Does not the valuation of puts as in all things reflect market sentiment as well as fair value. Are there any free valuation model available on the internet that contain a fair value component and a market sentiment component? Generally how are premiums on puts priced today compare to the historic premiums at this time of year? My question is germane because perhaps if one if purchasing out of the money puts the expectation is more for insurance purposes- such as protection in the event the price falls 20% or more, and therefore market sentiment may have more of an impact on price than fair market value. I know little about option pricing but on the face of it there seems to be a large disparity between put pricing of Cisco and Yahoo. Comments?

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