SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : LEGATO SYSTEMS LGTO
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Zoro who wrote (839)2/13/2000 3:30:00 PM
From: Chuzzlewit  Read Replies (4) of 1138
 
Thread,

For those interested in this sort of thing, I just calculated the implied volatility for LGTO call options. The volatilities are clustered around 92%. This compares to historic volatilities which averaged around 67% for the six month period ending December of 1999.

A covered call play looks intriguing for people wishing to mitigate their risk. For example, The June 40s are selling for 5 11/16 (mid-point between bid and asked), which would yield the net cost of establishing the cc position of $29, and with a 0 price change between now and June a profit of 19.6%, which annualizes to 68.7%. And if the stock price rises to above $40 by options expiration, the profit rises to 37.9%, or 155.7% annualized.

TTFN,
CTC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News