Dell Technologies Inc. Message Board

STOCKTALK

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 : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: PAL who wrote (112046)	3/25/1999 12:42:00 PM
From: BGR	Read Replies (1) of 176387

Paul, I have read in thestreet.com (I think) that some option MMs for highly volatile internet stocks got killed where they failed to quickly reset the bid/ask in a dynamic environment, hence there days the volatility premium is artifcially higher that what the estimated volatility indicates. The example that you have given clearly demonstrates why it is in general preferable to go long the furthest out LEAPS calls, as the time premium is barely enough to cover just the risk free interest rate. For this reason, I think the Black-Scholes estimate is a consitent underestimate when it comes to LEAPS calls for an equity with considerable upward trend. -BGR.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next