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


To: GVTucker who wrote (107634)8/16/2000 2:38:16 PM
From: Saturn V  Read Replies (2) | Respond to of 186894
 
Hi GV Tucker,

Ref <Unfortunately, I have no idea how the heck any of us can use the above data to make any money. >

Volatility becomes important when you trade options. The option contracts are written based upon the stock volatility

Do you know how volatility of a stock is measured these days ?

Twenty five years ago volatility (Beta) was measured by calculating the "correlation " of the stock with the Dow or other market index.

I was told by someone that today the volatility of a stock is calculated by comparing daily stock price with the moving average of the stock itself.

Can you or anyone else point me to any information on this issue.

Thanks



To: GVTucker who wrote (107634)8/16/2000 3:17:11 PM
From: Road Walker  Read Replies (1) | Respond to of 186894
 
GV,

re: "To give you some factual backup, the most recent weekly volatility of INTC was 28.5. A year ago this time it was 35.5."

You noticed I said relative volatility. I'm guessing because I don't have the data, but it seems that Intel has been less volatile relative to market in general and especially the Nasdaq, than it used to be. It was certainly less volatile during the Spring correction, maybe that is what is giving me this impression.

Could there be a at least a partial connection between Intel's lower volatility and it's PE expansion over the last year? Inclusion in the Dow leads to lower volatility leads to higher PE????

Not much news today so might as well speculate on things that make no difference. It's more interesting than argueing about bin splits <g>.

John