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 : Novell (NOVL) dirt cheap, good buy?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Fiondella who wrote (25220)1/29/1999 4:00:00 PM
From: Don Troppmann  Read Replies (1) of 42771
 
Paul:

It appears Bernie may have gotten 7 & 11 for his turn rolling the dice.

While the premium on the option LNOAD seems high at first glance the option position offers almost a dollar for dollar opportunity. A move to 21 by Novell, prior to the end of September 1999 would likely produce a 25% dollar for dollar return on your investment. Novell at 22 produces a 50% return and so on.

If the stock moves to 22 by March 31, and you took your profits, the annualized rate of return would be in the range of 200%

It appears Bernie perceives very substantial support for Novell in the 19-20 range. Basically Bernie has managed to get almost an even money bet in the options market.

Much better than rolling the dice.

Don T.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News