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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (4614)	1/29/1998 7:55:00 PM
From: tom pope	Read Replies (1) \| Respond to of 7841

I can't answer satisfactorily because I don't own an options program that shows historic volatility for SEG. But I suspect from the narrowing of the Bollinger bands that options volatility is also low (subject to correction from someone who owns optionstation or similar). Just on the basis of the principle of reversion to the mean, this might be a time to buy options -e.g., straddles - rather than sell them. Take a look at the SEG Bollingers as they narrowed in early October and preceded (predicted?) the collapse immediately following. As I said, I don't currently own a working options program, but I have made money in the past buying low volatility. And tho' I've seldom had the guts to do it, selling options after a collapse is usually a good strategy. After the October rout OEX options were over over 45% implied volatiltiy. They're now down in the low 20's. Selling way out of the money options (a puts/calls combo) on the Tuesday following the crash would have been quite profitable. Takes guts, tho.