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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: On the QT who wrote (88397)	1/11/1999 4:59:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

OtQT, As long as short term option prices follow the Black-Scholes equation (which is almost true by default) and the 20-day implied volatility is not too far off from the average 6-month volatility, I remain confident that the option is fairly priced wrt the underlying equity. If the implied volatility is less/more than the average, I feel that the options are (under/over)priced. The former is the case with DELL now, which makes it a very tempting proposition to buy the Feb 90's. However, I will probably wait till the Jan expirey and then buy the Mar 90's. Hopefully the disparity in the volatility premium between LT and ST options will not be resolved by then. -Apratim. PS: When I was applying for my US visa in 1990 I was warned that once I have crossed the Atlantic sooner or later my name would get transformed into Tim. It, however, took 9 years, I see. :-)