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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 (56535)10/28/1998 1:56:00 AM
From: AlanH  Read Replies (1) | Respond to of 58727
 
Lisa, re:Options gobbledegook

On your inquiry regarding the following:
If you believe that the options is mispriced due to the highly persistence of the price movement and anti-persistent volatility, you should figure out why people sometimes make money and sometimes lose. It is the underlying people could not make it right, especially when volatility is high.

On the other hand, if you think the options is fairly priced, it will be an idiot to play with it, no matter what ways people play it.


Look like reverse psychology? Maybe... On the other hand, if the stock's direction and movement are given, then "fair price" for the option is easy, right? Of course, most of us don't know the future, so the argument becomes somewhat silly (as stated).

I believe the author's point is: focus on the stock (and associated psychology), not on whether the option meets some valuation formula.

Sounds fine, but I'll retain the fair-value models nonetheless. <g>

Just a guess,
Alan



To: ViperChick Secret Agent 006.9 who wrote (56535)10/28/1998 8:25:00 AM
From: SJS  Respond to of 58727
 
Lisa,

Briefing.com did a piece on RNWK just recently, but I don't know how to access their archive functions for Story stock pieces.

The jist of the comments were that they've recently struck deals with NSCP, and a few other, but there is no money changing hands. Briefing liked the deal conceptually, but wonder how they're gonna make all the dough for the multiple their stock price commands. Maybe it's on their tools and servers...

anyway, they're part of the internet frenzy stock club, so momentum rules...