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 : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (4919)	4/13/1999 3:21:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 6021

Black-Scholes is one option pricing model (that's the Nobel price winner). I use it but it cannot handle events - such as an earnings release. The Black-Scholes will do just fine for you since you are not trying to go through a single earnings release. Use the model in reverse by using the price to calculate the volatility. Use that number to calculate other option prices. If you check the pricing of NETA options in this manner, their pricing will usually be consistent. If you are going to buy for spreading, and you hope to finish the spread in a day or two, there's usually no need to evaluate out every option. As was evident from the earlier action (I can say that now NETA is behaving as predicted ;-), we are having the selloff as those who bought below 20 bail out.