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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?


To: TelecosmFan who wrote (2297)4/20/1998 5:30:00 PM
From: Dennis J Baltz  Read Replies (1) | Respond to of 16960
 
I was surprised to see the sep98 $30 call options are going for $8.5 This does not seem to be a bad price since the next quarters earnings will be out before they expire.

IF 3DFX is right about their 15-20% growth in earnings over the next couple of quarters, their forward looking PE at 15% would be 33.875 / 2.50 = 13.5

Since I don't normally buy options, could anyone tell me what I'm missing? This seems to be very low.