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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: BP Ritchie who wrote (18589)	11/20/1997 10:13:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 42771

Executives from AT&T also said they remain confident in their choice of Schmidt on Java Novell to provide directory services for the telecommunications giant's sprawling network news.com This has Audio of the CEO talking

To: BP Ritchie who wrote (18589)	11/20/1997 10:39:00 AM
From: E_K_S	Read Replies (4) \| Respond to of 42771

For an excellent overview of how one analyst views Novell's option pricing, I suggest you review Mr. Ben Antanaitis 's option pricing model. Option Pricing model explained - Sun Microsystems (Nov'97) option montage... a Case Study: pipeline.com The Novell Nov. option montage using the same analysis (as of 11/14/97 data): pipeline.com Remember that you need to take a snap shot everyday and minimize the outstanding Open Interest dollar amounts to arrive at the model's estimate of the most likely target strike price (ie. the 'Maximum Pain' point). ====================================================================== Regarding Put/Call ratio...my experience and observations indicate that the normal ratio is 1:2...twice as many calls for each put. Investors are usually bullish. Any significant deviation from this ratio may indicate a bias for the stock to move in the direction where this normalized ratio returns to the 1:2 level. I use the Open Interest sales to calculate the actual ratio for each corresponding call and put 'relative' strike level. At present levels, I calculate the Nov. Put/Call ratio around 1:3. The call level is 62% higher than the expected level. For the ratio to return to the expected normalized level Open Interest either (1) must decrease for the Nov 7 1/2 calls or (2) increase for the Nov 7 1/2 puts. I guess the reason for the higher level of calls is due to investors speculation on the Tuesday earnings number. Hope this helps and Good Luck EKS