Cyrix 1 Where anything goes Message Board

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Technology Stocks : Cyrix 1 Where anything goes

CYRX 8.515

-8.1%

Nov 5 3:59 PM EST

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To: Investor A who wrote (497)	6/2/1997 9:18:00 AM
From: Gregory	of 640

I can not claim that I am expert either. I did some reading and basically the experience I have with options is that I have lost $1200 in a 2 month period from the account of $10,000. The thing I do know is that closer the expiration date, more the price of the option is affected by the stock movements. So; if your convictions are that INTC will fall down in the next 2-3 month you buy an option that expires at that time. You did exactly that. Strike price to choose? That is what I wanted to know myself. I have seen the tool that evaluates the option prices of the stock and basically tell you if the option price is overvalued and how much. But for some reason this tool only shows it for calls not the puts. I do not beleive it is precise, nobody has the crystal ball, but it gives some idea. INTEL CORP 151 1/2 # CALL PRICE BLK-SCH DIFF No Prc 47 1/4 N/A 19 JUL110 42 1/8 42 1/8 ...... 37 OCT115 39 1/4 40 - 3/4 What it says here is that this price model estimates the price of the JULY 110 CALL be 42 1/8 (middle column) and the market price now is 42 1/8. So the optin price is not over or undervalued. For october it says that price is lower than it should be for 3/4. All this probably is just talk because I can not tell you what this model shows for price of the puts. But basically I think you are doing the right thing. I would do the same, but do not have extra money to put at the risk. Good luck.

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