Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Matt Matthews who wrote (16299)	2/18/1999 6:44:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

I have option pricing software. I bought april 175's for $3 5/8 and according to the program the fair value should be $6 7/8!!! I think we got a great value!!! Calls were overpriced going into earnings, but now puts are overpriced with the 11% YTD drop in the Nas. The technicals favorable for a rise in MSFT price. Glad someone has a program for it---prices just look too low for me with basically little time premium and given that we know what happens around earnings release and in this stock split time also. Thanks

To: Matt Matthews who wrote (16299)	2/18/1999 1:24:00 PM
From: Just_Observing	Respond to of 74651

The option pricing model assumes a volatility for the stock. If the volatility changes then the option price can change dramatically. What volatility are you using in your model? Is it the annualized volatility or a more recent one? You know that you can write your own models very easily if you like. Or you can download several different models form many sites for free. Please be careful in the volatility that you use in your model or you may lose your shirt in the market. And please make sure that your current model's answer agrees within a few percent of other models. Good Luck.