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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?


To: M. Frank Greiffenstein who wrote (7735)8/28/1998 1:22:00 PM
From: Ron Harvey  Read Replies (1) | Respond to of 14266
 
Options: Looks like a big premium to me when you also factor in the spread. I like to figure margin costs for an equivalent amount of common and compare those costs to the spread. That gives me a better idea which way to go with a stock that has both earnings and prospects to provide a measure of downside risk. In this case I'd opt for the common as both a money-saver and a money-maker.



To: M. Frank Greiffenstein who wrote (7735)8/28/1998 4:24:00 PM
From: pham  Read Replies (1) | Respond to of 14266
 
>>They've got intrinsic value (well, at least today),time + volatilty premium only 1 7/8<<

If you don't mind my asking. How do you figure the time + volatility premium of 1 7/8. I'm just learning how to trade option.