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 : Internet Analysis - Discussion
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Joe E. who wrote (136)2/8/1999 12:41:00 PM
From: Chuzzlewit  Read Replies (1) of 419
 
Joe, I think you are hitting on a point that needs to be emphasized -- the discussion of risk thus far has pretty much assumed risk averse investing (which you point out does not exist in certain market segments) and efficient markets (which I don't believe exists in smaller capitalization and thinly traded issues).

But I'd like to come back to the issue of the internet stocks in this connection. If you look at threads like AOL you will find that many investors are momentum guys. I suspect that if you did a careful study of the behavior of such stocks you would come up with the following results: a very high beta (and implied volatility), and a negative alpha. If this is the case does it make sense to buy these stocks and sell out of the money calls against your position?

TTFN,
CTC
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