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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (13326)	10/5/2004 8:14:49 PM
From: tom pope	Read Replies (1) \| Respond to of 52153

Sam, the only thought that comes to my mind is that the implied volatility for those calls is 114%, the DEC are at an IV of 94%, the NOV's at 84%. Bizarre.

To: Sam Citron who wrote (13326)	10/6/2004 12:41:25 PM
From: f_mcknuckles	Read Replies (2) \| Respond to of 52153

Options seem way underpriced in general. Stock volatility is at about an eight year low right now: finance.yahoo.com^VIX&t=5y&l=on&z=m&q=l&c= And as someone pointed out, markets don't tend to follow normal distributions (fat tails) so volatile events happen more often than they should. So keep in mind two old sayings: "selling volatility is like running in front of a steamroller and picking up nickels." or "people who sell volatility eat like birds and shit like elephants"