VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Rich Wolf who wrote (14642)	9/17/1999 5:25:00 PM
From: Harold Hertzfeld	Read Replies (1) of 27311

Rich A market maker (MM) could have bought these 700 options in order to purchase 70,000 shares of VLNC next Monday at a guaranteed $5 price per share. He might use these shares to close out a short position. The option volume today was very low, indicating that substantially all of this open interest of 1400 + shares would had to be closed out sometime today by exercise. In my above message I understated the return potential on the Buy Stock Sell Dec 5 call strategy. Without commissions the net price paid for Valence is about 4 dollars per share. So, if the stock price were over $5 per share in December at the exercise date, the return would be a 1 dollar gain on a 4 dollar investment for 3 months. What kind of percentage gain is that? The stock action was very encouraging today. Harold

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