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Technology Stocks : PairGain Technologies

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To: margin_man who wrote (20019)2/3/1998 9:55:00 PM
From: Jay Mowery  Read Replies (4) of 36349
 
Patriot & jason,
Help me out here. I'm starting to understand the option oppertunities better, I think.
When ya'll are talking Feb. 20 calls at this point. Ya'll are talkin' buyin' calls at 1/2 and 7/16(ie: 5 or 10 contracts). Which would cost about 250.00 on 5 contrasts at 1/2. Antisipating PAIR will increase in value to 20.00(+)/share or better, over the next several days prior to their expiration.
The calls increase in price and you sell them back at a premium to what you paid and keep the difference.
Worst case you lose your 250.00 if they expire?
If this is correct what are the chances that this oppertunity will still exist in the morning?
Thanks and best to ya'll,
Jay
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