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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Jean M. Gauthier who wrote (4063)	1/26/1999 9:34:00 PM
From: SJS	Read Replies (1) \| Respond to of 17183

Jean, Use a more quantitative analysis in addition to your opinion. You have a year on those leaps. Try the option modeller at the CBOE to see if they are or not. One more thing: I found this this evening. while not specifically about EMC, there is probably a touch of truth to it for most optionable stocks, especially large cappers. This corroborates my independent assessment a couple of days ago.... __________________________ CHICAGO, Jan 26 (Reuters) - Investors continued to bid equity calls higher on Tuesday after International Business Machines Corp. (NYSE:IBM) set a stock split. Calls on IBM were especially active on the Chicago Board Options Exchange, where the February 185, 190 and 200 calls topped the most active list, registering combined volume of 12,750 contracts. The stock was up 3-5/16 at 184-1/4. Overall equity call volume on the CBOE, the biggest options market, outpaced put volume 228,871 contracts to 78,981 as of 1130 CST/1730 GMT. "The smart money is currently selling extremely expensive calls to the public," said Jerry Hegarty, chief analyst with Cape Market Research and editor of Hegarty's Options Navigator. "Look for call option writers to clean the pockets of call speculators over the next few months," he added. "The euphoria swirling around stocks virtually insures little overall upside progress in prices." Michael Schwartz, chief options strategist with CIBC Oppenheimer, attributed part of the heavy volume in equity calls during the last few weeks to day traders on the Internet. "It's a combination of day traders and people selling premium," he said, noting that premium levels were still very high. The S&P 100 (INDEX:$OEX) was up 3.15 points to 619.21, while the Market Volatility Index (INDEX:$VIX.X), which measures implied volatility of several strikes on OEX options, slipped 0.86 point to 30.81.