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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (410)	12/30/1999 2:58:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

Another clearly-written strategy from you, Rose. Thank you! I'm going to run some numbers. Particularly like the more aggressive scenario. What a surprise, huh? Aren't you supposed to be on vacation by now? :)

To: RoseCampion who wrote (410)	12/30/1999 5:16:00 PM
From: taxman	Respond to of 8096

"implied volatility...135%, an outrageously large number" this is true, compared with the historical volatility. however i found on many occasions the market is smarter than the theoretical calculations and options that seem grossly overvalued turn out to have been bargains. thanks for running the numbers. regards

To: RoseCampion who wrote (410)	12/31/1999 9:07:00 AM
From: Jimbo	Respond to of 8096

Anyone have a Web site carrying the split adjusted contract symbols for the Q ? Looking at the CBOE site they carrying the Jan through a strike of 150 wheres the rest ? Am I missing something ?

To: RoseCampion who wrote (410)	1/1/2000 8:23:00 AM
From: Eric Martin	Read Replies (1) \| Respond to of 8096

Friday after the split, the implied volatility on January '00 QCOM calls dropped from 135% down to 95%. This is probably a reflection of the end of the short covering and window dressing of the stock prior to the split. It seems the level is now more "rational" but it takes a lot of wind out of the covered call write strategy. Also on a percentage basis, the increase in bid ask spread on the options after the split makes trading them more difficult. Eric