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Technology Stocks : Westell WSTL
WSTL 6.440+1.7%3:55 PM EST

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To: Timothy K Robbins who wrote (7963)11/24/1997 1:03:00 PM
From: ratan lal  Read Replies (2) of 21342
 
Tim

<< 5 Dec 20c @ 5/8
5 Dec 15p @ 3/4

I'm not sure which way this one is headed, but if WSTL trades down about 1 or up
about 1 1/2, this option position can be canceled with a nice profit for a few days
trouble. >>

I dont get it. WSTL is at 16 7/8. If WSTL goes up 1 your dec 20c may go up by 1/8 or 1/4 depending on volatility and time value left. you still lose 5/8 to 1/2 (3/4-1/8 or 1/4).

Conversely if WSTL goes down 1 1/2 you have the same problem.

Pleas explain

ratan
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