CAWS - Wireless Cable (New and Improved) Message Board

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Technology Stocks : CAWS - Wireless Cable (New and Improved)

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To: Stanley L Brown who wrote (368)	11/19/1996 10:13:00 PM
From: .com	of 5812

Hi Stan: The advantages to owning the stock instead of the option is time and time and time and time. For instance, if you bought the June 5 options for about $1 each, and at the end of June CAWS is still below $5, you have nothing. If you buy the stock now at $3.50, and at the end of June it is below $5 you still have the $3.50 stock that you bought--of course, if CAWS is still below $5 in June it'll really be a pretty sucky stock you'd be holding onto. **It brings up an interesting point: if CAWS has not taken off by late June and it is below $5, it would probably be because the whole deal fell apart and CAWS could easily be below $2 at that point. In which case with the option you only lost $1; with the stock you could be down $3.49. Hmmm... Something to think about. --Scott

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