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Technology Stocks : Intel Corporation (INTC)
INTC 48.59-1.3%3:59 PM EST

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To: Gordon Hodgson who wrote (7277)1/4/1997 5:07:00 AM
From: kas1   of 186894
 
Nothing wrong with wanting a slam dunk -- but you paid too much for too much insurance. Extra time on an option is just that: insurance. Find the time frame that makes you comfortable and use it. 2 yrs is probably too much. Stick with 6-12mos maybe? "Experts" generally recommend 2-3 mos as a "good balance" of security and price, but your level of risk tolerance may vary.

To all options people: does anyone know a ballpark figure for beta for intel, beta as in volatility, for use in the binomial option pricing formula? thanks.

For novices: the higher the beta, indicating a more volatile stock, the more you generally pay for extra time til expire on that stock's options. It's just like skydivers having to pay more for life insurance. More volatile stock means pay more for extra time-insurance on it.
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