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Technology Stocks : America On-Line: will it survive ...?

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To: CLAUDE JOHNSON who wrote (4431)8/13/1997 8:30:00 PM
From: Andre Lukas   of 13594
 
CLAUDE, are you keeping scores of what we think AOL will close on Friday, option expiration day? My guess is at the strike price. Look at the huge open interests:

AOLHM 5,055 AOLTM 7,392

AOLHN 6,779 AOLTN 5,998

A toss up between 65 and 70. After further considerations I choose 65 to close on Friday for the following reasons

1) volume starts to decrease

Monday 8/11 68 -1 15/16 1.8 M (+ 18%)
Tuesday 8/12 67 1/4 - 3/4 817K (- 44%)
Wednesday 8/13 67 5/8 + 3/8 755K (- < 1%)

2) Analysts recommendations (per Zacks):

SB 7 MB 6 H 4 current average 1.8 ( 1.0 is SB and 5.0 is SS)
last week avg 1.6 (change - .2)

3) Accum Distribution "C" as of today (down from "B")


Good Luck both Longs and Shorts

Andre
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