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Technology Stocks : Loral Space & Communications

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To: Fernando Saldanha who wrote (3134)5/19/1998 11:21:00 PM
From: dougjn  Read Replies (2) of 10852
 
Thanks, great response. Actually, I've heard most of what you said (probably all) but its never fully sunk in. I don't know what I'm looking for. Understanding, I guess. It seems elusive.

Now I've been to web sites that run Black-Scholes and calculate the implied volatility for me.

But what does that really give me. Nada. Actually, some of the sites calculate whether its above or below some historical volatility trend line (six months I think).

That I guess has some value.

Seems to me that volatility is BS. Or largely. Its really the X factor. Sure, volatility is a component. But so is buy/sell pressure on the day in question. Trader sentiment, as opposed to general market sentiment (reflected in the underlying stock, I suppose.) Etc.

All in all, I haven't got my arms around it.

Doug
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