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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST

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To: TigerPaw who wrote (11160)9/21/2000 1:06:19 PM
From: JRI  Read Replies (2) of 17183
 
*OT* Q: (Trying to settle an argument) Let's compare a stock (like EMC) trading at 100....if Dec calls (120's) are trading at 6..and let's take another stock (AT & T) trading at 30....and Dec calls (35's) are trading at 2........can/does the PRICE of a call indicate (at all) that the market believes one stock will appreciate more than another-at a given point and time?? (and hence, higher prices for some stock's calls over another's) OR it is purely a question of volatility (ie, the price of a call...regardless of price...does not indicate anything about the market's view of that stock's potential appreciation (vis-a-vis) other stocks....

(OR, does volatility, by definition, AUTOMATICALLY assume/mean upside potential (as well as downside)..

Sorry for the blurry question..this is the way it was presented to me....thanks in advance for any efforts...
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