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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Francis Torti who wrote (121883)	5/3/1999 1:58:00 PM
From: taxman	Read Replies (1) \| Respond to of 176387

The volatility part of the pricing model is a measure of the range the underlying security is expected to fluctuate over a given period of time. The measurement of volatility is the standard deviation of the daily price changes in the security. The more volatile the underlying security, the greater the price of the option. There are two different kinds of volatility. There is historical volatility; and there is implied volatility. Historical volatility estimates volatility based on past prices. Implied volatility starts with the option price as a given and works backward to ascertain the theoretical value of volatility. Normally historical volatility is a strong predictor of implied volatility. In the case of dell, implied volatility is approximately 83%. this is relatively high, but upcoming earnings announcements of cisco and dell could account for some of this. see mrstock.com for volatility charts. Regards