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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST
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To: lbs who wrote (4138)7/9/1997 5:44:00 PM
From: steve berman   of 42804
 
You don't control 1000 shares. You have the right to buy 1000 shares at some point in the future. You will only control those shares if you exercise your option. To do so, the stock would have to appreciate to at least $35 plus the amount of the premium you paid. If the stock doesn't reach that level (or if it does, but you don't exercise your options in hopes of the stock going higher), you will have nothing to show for your investment. So it seems to me that the downside here is your entire investment (premium paid). Considering the fact that approx. 90% of options go un-exercised, you have a pretty good downside exposure.

Just MHO.

I do wish you good luck, however, because if you make money on this deal, we all do!
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