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


To: ild who wrote (124978)1/16/2001 7:45:18 AM
From: Road Walker  Respond to of 186894
 
ild,

re: "Amazing fact: Jan INTC puts are extremely cheap."

Intel has closed within a five point price range (30 to 35)for the last 19 trading days, very rare. The volatility premium has been reduced for the options.

John



To: ild who wrote (124978)1/16/2001 8:01:21 AM
From: GVTucker  Read Replies (2) | Respond to of 186894
 
ild, RE: Amazing fact: Jan INTC puts are extremely cheap.

Actually, I cannot recall a time pre earnings when INTC puts have ever been this expensive.

At the money puts one month out have a volatility in excess of 73. Normal prior to earnings is closer to 65. As far as the Jan puts you're looking at, at the money puts have a volatility over 100. That's YHOO like volatility priced in.

What's the basis for your thought that the Jan puts are cheap?

It looks to me like a lot of people have hedged their risk.



To: ild who wrote (124978)1/16/2001 12:46:05 PM
From: Paul Engel  Respond to of 186894
 
ild - Re: "Disclosure: have INTC Jan puts"

Cool.

And I'll bet you tell us the strike price someday soon - like - after the expiration date.

Paul



To: ild who wrote (124978)1/16/2001 1:37:14 PM
From: Mary Cluney  Respond to of 186894
 
ild,<<<Question: How much of bad news is already factored in INTC stock price?>>>

In my opinion all the bad news and then some have been factored into INTC stock price already. I'm hoping INTC takes advantage of this situation and write off everything they can into today's earning report (cleaning the books - so to speak) and guide expectations to the lowest level possible and blame it all on the recession.

If they do this, in the worst case, the stock opens tomorrow at new 52 week lows (28?) and then ride the economy, lower interest rates, tax cut, back up.

But, don't worry, Intel would never even think about doing anything like this.

Mary