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Strategies & Market Trends : Canadian Options

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To: Clark Kent who wrote (1584)	7/10/2010 12:54:58 PM
From: tyc:>	Read Replies (1) of 1598

I took a look at your SA Ja50calls, using the data you provided: . If the stock price is $29.24, the Ja50 call is way out of the money. The call will probably not react with any vigour to movement in the price of the stock. Reflecting that, the delta is only 12%. (leverage is therefore currently ~6x) . My calculator indicates that a current price of .55c for the call indicates an implied volatility of 51.6%. This is not cheap given that recent Historic Volatility of the common is only 50%. (The market often makes a joke of such prognosis)

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