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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (6952)	11/13/1997 9:21:00 AM
From: McNabb Brothers	Respond to of 9285

Roger, If you see AOL at a $100, then the shorts including me on this thread will really be hurting in all of our other short positions! Still think it is very wise to sell on the bounces! Hank

To: Roger A. Babb who wrote (6952)	11/13/1997 5:36:00 PM
From: Bearded One	Read Replies (1) \| Respond to of 9285

One thing I forgot to mention. If you take a 5 year option at with a strike price of 104 for $11 and you put a volatility of it of, say, 40%, which is less than AOL's current volatility, then you can work the numbers backwards and get an implied current stock price of 53 dollars! Up the volatility to 60% and you get an implied price of about 38 dollars.