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Technology Stocks : PairGain Technologies

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To: joe smith who wrote (20259)2/6/1998 1:05:00 AM
From: margin_man  Read Replies (2) of 36349
 
Joe,
Now I have more info. to work with.
If you don't buy back the call and PAIR continues to move up,
you'll loss 1/4 (you knew that) + commissions (if the calls get
exercised).

The Feb 20 call is at 1 5/8 x 1 3/4.

IF PAIR gaps up tomorrow, the calls would also go up.
If you don't want to cover the call at higher price, then do some
good use of the premium you received such as buying other options.
I like the APRIL options because it's the month of earnings.

If you can buy back the calls tomorrow for less, do it unless
you believe PAIR won't close above 20 at the expiration.

Good luck.
Patriot
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