SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Data Broadcasting Corp. (DBCC)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jimmy Dell who wrote (2405)1/9/1999 9:28:00 AM
From: Ariella  Read Replies (1) of 5102
 
You left out Barron's advice about DBCC covered call writing:

<<And so there are companies like Data Broadcasting, partner in the soon-to-go-public CBS Marketwatch Website and a current beneficiary of Internet fetishism. With the stock having doubled from 13 on Christmas Eve to 26, its February 22 1/2 calls were trading Friday at an implied volatility of 190%. That, Fishback notes, suggests an expectation that the stock's probable range for the next year is 7 to 90. Hard-to-justify call pricing, it seems.

To Fishback, "when people start flushing the pricing models down the toilet," it's time to be a contrarian -- not by going outright short in the face of awesome upside momentum, but by selling calls against stock positions to capture some of that bloated premium. >>
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext