SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: TheHahnz who wrote (864)1/22/2000 9:06:00 AM
From: OX  Read Replies (1) | Respond to of 1235
 
i was going to respond to your orig post #863 also.
basically, there's a reason why prems on $10 stocks are more as a percentage basis than $20, $50 and $100 stocks... lower priced stocks are typically more risky (volatile) and therefore command a higher prem. i think that is taxman's point too.

I am making no value judgement on playing low priced stocks... it's all depends on one's style and comfort level.



To: TheHahnz who wrote (864)1/22/2000 12:39:00 PM
From: taxman  Respond to of 1235
 
i agree with ox's reply.

theoretical value for options is based on historical volatility which may or may not reflect future volatility. for example, over the past 30 days lucent has been extremely volatile and the options look to be a bargain on the basis of the black-scholes model. but are they?

regards


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News