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


To: Perry Ganz who wrote (17321)3/6/1999 9:22:00 PM
From: t2  Respond to of 74651
 
Perry
I used the CBOE options calculator---love the site.
I guess the implied volatility will be obvious once I input the current price of the call option on this calculator. Now I realize the volatility of the Dell Feb 100 calls with less than 3 days to expiry (stock was at 93---at the time I remember) and the options were at 1 5/8. Volatility at that point was around 85!!!

Thanks taxman and Perry for your help in allowing me to understand some of the pricing issues in options. The volatility on April calls appears to be 39 but lower on March calls.--Sorry for trying to seem like some expert on the subject.

BTW--I guess knowing how these are prices is important but not as important as predicting the trend in the stock. Definately helps the analysis---if you plan to close out the position based on different stock price scenarios. (especially short expiration dates)
I expect the implied volatility of MSQ options to increase in a few weeks. Just my beginner's options opinion.