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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (24831)	11/16/1998 11:19:00 PM
From: Karl Drobnic	Read Replies (1) \| Respond to of 31646

I've had several e-mails indicating some think I lowered my opinion on TAVA to an $8 stock. What I said was that options specialists were pricing TAVA options as if TAVA would be over $8 several months out while the MM's were capping the price at $6.94. The option specialists set the bid and ask prices on TAVA options on the AMEX, Pacific, CBOE, and Philadelphia exchanges. They appear to be using Black-Scholes to set the option prices. Black-Scholes is a math formula with a number of inputs, some of which are judgement calls. So unless each of the 4 specialists is using the same service to calculate the pricing, we have four specialists coming to very similar conclusions about the probability of TAVA being over $8 while MM's were capping the stock at $6.94.