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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?


To: Proud_Infidel who wrote (2456)8/16/2002 9:30:11 AM
From: Jerome  Respond to of 25522
 
Brian...no bell curves are likely... In this market most options will trade close to the stock price. For example...in May I bought some AMAT at $26.00 and wrote the 27 1/2's for a covered call for the July expiration.

No one considered the huge decline in AMAT stock price from 26 in May to 13 this week. Since the most active calls are near the stock price, there is no bell curve.

There might have been a bell curve if the price was stabilized at a narrow trading range. (Look at ORCL which trades in a tight range for comparative purposes)

JMO...Jerome