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To: waverider who wrote (3650)10/2/1998 2:22:00 PM
From: wlheatmoon  Respond to of 14427
 
yup. volatility is priced in. yahoo has as good a chance of dropping 50 as mrk going down 15. hence, the risk/reward. the expense also takes into consideration that the market believes that yahoo has a good chance of getting to 110 in a heartbeat. lol. good luck.

i'm actually fairly new with options, but i like them. (so far)

mike