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

To: ViperChick Secret Agent 006.9 who wrote (37037)	3/20/1998 1:39:00 AM
From: Electric	Respond to of 58727

Lisa, From what I understand, the person is saying that the model makes certain assumptions in the calculation, and that there may be error with that specific portion of the model due to a problem with the data pertaining to specific out of the money puts.. The thing I have found is that you cannot determine all the factors totally correct for any given moment, and I havent said this to anyone, but I think the model I use at ETurd does not change intra day for delta, and that may be why options are over/under priced as per the model.. What that means is if a stock is more volitle than historically normal than the pricing isnt adjusted adequately, since Delta=volitlity factor... When the volitility dies down, the option is correctly priced.. Again, that is IMHO, but I would be willing to put money on it.. That is how sure I am.. I wish I were more sure these positions woudl make me back the 1500 I have lost on DELL, being a fool.. Live and learn I suppose...