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Technology Stocks : Dell Technologies Inc.

DELL 128.82

+2.3%

10:00 AM EST

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To: Jeffry K. Smith who wrote (112842)	3/27/1999 12:36:00 PM
From: edamo	Read Replies (1) of 176387

jeffry...re leaps/options terminology suggest you purchase "leaps" by harrison roth..it is plain english and will give you succinct definitions and outlined strategies.. 85/55..was the percentage change in the premium which is due to a change in perceived volatilty..an option strike rarely trades par with the underlying..for their is no incentive to buy or sell the derivitive..if common at 80 and put strike at 100, the premium would have to be more than the 20 difference or transaction would be biased and not work...the implied volatility which has to do with things as time and assumption of stock direction adds a premium to the 20 difference...the longer time, the more the premium..this factor easily assumed or calculated...it is the intangible psychological stock direction premium that is watched closely and sets the timing to buy/sell the option..i've been very basic..there is a bit more to it...just trying to lay out a concept..good luck,ed a. fotm=far out of the money strike price..

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