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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: codawg who wrote (24954)6/25/1999 12:46:00 PM
From: t2  Respond to of 74651
 
Why purchase July 95s? Do you think the stock will blow through 95 before earnings/expiration, or are you just looking for the premium increase if the stock rises to low 90s short term

Both reasons. However, i have not purchased higher than 85 strike. I would like to see the 95s at 1/8 for me to buy them. The 90s seem OK.
I am not saying 95s are not a good buy but i am just not as aggressive with out of the money calls.



To: codawg who wrote (24954)6/25/1999 1:20:00 PM
From: t2  Read Replies (1) | Respond to of 74651
 
Here is the options calculator site at the CBOE. Plug in the price of the options to get the implied volatility and then plug in this volatility to get the theoretical price with the number of days remaining to expiration that you wish to use. There are some assumptions to be made using this calculator.
cboe.com