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Technology Stocks : Newbridge Networks

NN 17.03

-0.1%

2:05 PM EST

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To: SFgymrat who wrote (4165)	4/20/1998 9:59:00 PM
From: Brett Nelson	Read Replies (2) of 18016

<I bought 20 NNEG May 35 calls today at 7/16 and am hoping to sell at 7/8. Any thoughts or comments?> Given that implied volatility in NN options is currently around 64%, the Black/Scholes option pricing model suggests you would need NN to move to $31.50 tomorrow to hit your profit objective. By Friday, given that you are fighting time decay in your options, you would need NN to be at $32.00 for the option to be priced at $7/8. Of course, if implied volatility rises, these prices would be less; if it falls, these prices would be greater. Good luck.

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