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To: bowledover who wrote (11026)3/1/2001 6:42:12 PM
From: mishedlo  Read Replies (1) | Respond to of 13572
 
By cheap I mean what you would have to pay for similar priced issued.

I was going to use the example of RIMM vs EMC but when I looked it up now both are about the same. (strike 45 calls). EMC used to be way way less. No doubt vecause the volatility of EMC has shot up recently. I just looked up AMAT instead, at nearly the same price, and it is lower.

Before EMC started having days like these past few, it options were "cheaper" because of less volatility. Options on some retail stocks, KSS for example, although at 62 and looking at strike 65's are less expensive than any of those above. Thus I would call KSS options "cheap", both puts and calls.

That is what I meant by cheap. The implied move might not be as great but I prefer something slow and steady than something that gives me grief every 5 minutes or so.

M