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Technology Stocks : Dell Technologies Inc.

DELL 138.22

-1.6%

Dec 9 3:59 PM EST

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To: TigerPaw who wrote (115979)	4/10/1999 1:16:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

No, it depends on the option. Deep in the money options tend to behave like the stock (their delta approaches 1), but out of the money options tend to move more slowly relative to the underlying stock. Example (I'm making these numbers up): A June 10 might drop on almost a point for point basis with the underlying stock, but a June 50 might move only 25% as much as the stock moves. The ratio of the movement of the option compared to the movement of the stock is called the delta. The deeper the option is in the money, the greater the delta up to a maximum of 1.00 TTFN, CTC

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