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.

Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Kitskid who wrote (1341)	4/19/1999 8:14:00 PM
From: Dave.S	Read Replies (2) \| Respond to of 1598

Since this thread has come back to life I just want to comment on the options for Bid.Com (BII). The mania which has developed over this stock has opened opportunities to objective traders. The clients are paying up for the options forcing the market makers to raise the volatility to levels which we haven't seen at the TSE since Bre-X. The Vol is currently around 200. If you believe that this company is not worth the $900 million in value which the current market assigns then check out the October options. The 20 calls are $13.10 bid, the 20 puts are $8 bid, for a total of $21.10. If the stock goes to zero you make $1.10, and you are protected to $41.10 on the upside. For the 22.5 lines the numbers are $12.35 and $9.55 for a total of $21.90, protection is from $0.60 to $44.40. This kind of fat premiums and protection are rare. Any comments? Dave