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

To: Kayaker who wrote (97076)	2/10/1999 10:21:00 PM
From: JBird77777	Respond to of 176387

RE: Relative movement of price of Dell leaps and Dell stock For an accurate comparison, it would probably be better to use the closing "bid" or "ask" prices for the closing price of the 120's. The last trade of the 120's on February 2 (apparently at 39) may have occurred earlier in the day at a time when dell could have been anywhere between 104 7/16 and 110, its low and high of the day, and it is unknown whether this last trade was at the bid or the ask. Today, for example, the last trade was at 31 3/8, as you pointed out, but the closing bid and ask was 31 3/4 - 32 1/2. In comparing prices near earnings dates, the comparison can also be distorted by changes in implied volatilities, as has been posted earlier this week on this thread. I think the difference is that the "delta" produced by an options calculator (i.e., .62) is an average delta for the remaining life of the option, which is considerably higher than the delta for the next several months (approximately .275, by my calculation). The short term delta gradually rises and averages .62. JB