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

To: notredame who wrote (1358)	4/23/1999 5:08:00 PM
From: Dave.S	Respond to of 1598

ND: I checked out JDS for you today. The VOL is at 62% which is about one-third of BII's. With the stock at 87 the November 90 line is $15.10 bid for the calls and $15.15 bid for the puts. Total of $30.25. I wouldn't write this straddle because I think the stock could easily be out of the range of protection ($60 to $120) within 6 months. The BII write was attractive because the stock was hyped up, was due to fall, and the Oct 20 straddle fetched more than $20! That 20 straddle is now worth $16.75 bid, $17.25 offered. It is always interesting to track the option volatility for historical and implied discrepancys. That is stocks whose historical vol is higher than the implied should be brought and vice-versa. Can anyone name stocks that fit this description currently? I'll answer any guesses. Dave