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.
Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?


To: GVTucker who wrote (11166)9/21/2000 1:51:38 PM
From: TigerPaw  Respond to of 17183
 
expected return has absolutely no effect
I sort of agree, it's just that absolute statements are always wrong.

The price and expected price determine strike points where volitility is maximum. A call too far from an expected price, prices outside expected volitility, trades pretty much at the difference between strike and current price with a small time premium. When you get toward prices that are more likely to actually happen then volitility becomes a premium.
TP (who is a minor player of simple options only)



To: GVTucker who wrote (11166)9/21/2000 2:45:42 PM
From: JRI  Read Replies (1) | Respond to of 17183
 
*OT* Thanks GV- Your explanations are always clear and to-the-point...Ever think about writing a how-to book? (seriously)....cheers..