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

To: Amy J who wrote (180745)	4/13/2005 8:36:32 AM
From: GVTucker	Read Replies (2) \| Respond to of 186894

Amy, RE: It's not irrational for the market to expect Intel around 20 come January 2007. A reasonable assumption, if you consider $450B annually in deficit spending, increasing gas prices, consumers no longer ATMing their real estate... The negative sentiment on those calls is the most I've ever seen. On the contrary, the calls you quoted are discounting an implied volatility of 28.9 on the offer, exactly where Intel options have been trading for a few years now. It may seem like the calls are cheap but the numbers don't bear that out. In the market expected Intel to trade at 20 in 2007 you can be darn sure that the price of Intel would be below that right now.