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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Heg Heg who wrote (35897)	3/3/1998 7:53:00 PM
From: ViperChick Secret Agent 006.9	Respond to of 58727

absolutely... that is one of the tricks... also looking at one strike out on the call and put and see the comparison between the two...with the IV etc.... i absolutely feel you cant do a good analysis without the put and the call....

To: Heg Heg who wrote (35897)	3/3/1998 11:34:00 PM
From: Electric	Read Replies (1) \| Respond to of 58727

Heg, Great insight.. and I agree with you completely.. I think there is more demand for the call options in general. Puts can have the same volitility and demand, as shown on CPQ today, it placed as many calls as puts, but today there was speculation to the downside, and I would tend to consider that abnormal.. I also agree with you about the sigma,and it is relative.. I would like to see a verified web page of sigma calculations. I tend to think it is relative and that Myron Scholes did a great job in defining its peramaters, thus the Nobel Prize.. Where did you get the calculation of volitility? My options are in the money and I am not sure you have followed my discussion with Lisa in days past, but I was noticing how as the option gets further in the money, the volitility factor is removed from the pricing, and it becomes pure price premium... Like the DELL I have.. the stock was at 143 yesterday (amazing huh) And my May 125 was worth 25...Only 7 points of premium in a upward trending market with 2+ months left.. I bet the current 125's arent priced at 8.00, they are at 9+ which is bothersome..lol As for INTC, as it was running the last few days, I still felt squeemish about it and I think if they dont smack their numbers, we will revisit the low 70's... Thats the price of the stock in reference... Finally the person I was talking to felt that there was no MM manipulation in an efficient market, rather the aspects of supply and demand, Beta and volitility, or saying there is no stripping... an interesting perspective... EDIT ETrade has DELL volitility at .57, seems quite high to me.... interesting... INTC at .39 and CPQ at .54