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


To: taxman who wrote (22774)5/17/1999 11:11:00 AM
From: t2  Read Replies (1) | Respond to of 74651
 
july calls implied volatility of 47 which is relatively high. i am considering selling them against my long stock position.

IMHO, it is not worth selling calls. If the stock was at 90 with the same volatility I would agree. It has dropped too much--all to do with the trial uncertainty. IMHO, all the negatives are factored into the current price. Any news of a settlement or even talks in the near future and the stock will take off. Even a slightly better trial performance could do the same thing. Poor performance is already expected anyways and won't be a surprise.

A bit more weakness and I am going to consider buying the July calls.