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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: semi2000 who wrote (14274)	4/10/2000 9:20:00 AM
From: Rick Murphy	Respond to of 21876

semi, Well ... not exactly. Option premiums are based on several factors of which volatility & dividend payout are two. Now, very few tech stocks pay anything noticeable on the dividend side but the volatility is another matter. If you're looking for lower premiums, look at stocks that pay considerable dividends or with low historical volatility, i.e., old economy stocks - maybe Int Paper or Caterpillar for comparison. Of course, lower premiums imply lower overall returns for those stocks. Personally, I don't mind paying 30% premium, two years out, for a stock with the potential to double or triple in that time frame. Regards, Rick