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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Mr Metals who wrote (85308)	7/12/1999 10:21:00 AM
From: GVTucker	Respond to of 186894

MM, over the past three years, Intel has been a poor stock to play for earnings using options. The volatility for the options moves so high just prior to the earnings announcement that those few instances where to stock really moves are not nearly as profitable as they would be with normal volatilities. To give you an example, at the money Intel July options have a volatility of 63 on the offer. This compares with a recent volatility of Intel stock of 51. In plain English, if earnings weren't tomorrow, the Intel July 65's would probably be offered at 1 3/4, instead of 2 1/8. That difference takes away >20% of your potential profit, a heavy price to pay.