3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

-18.8%

Nov 7 11:47 AM EST

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To: joe who wrote (19386)	7/20/1998 3:46:00 AM
From: Bruce L	Read Replies (1) of 45548

<Isn't it possible that the 25 and 27 1/2 call options were covered by the seller?> Yes, I'm sure many were covered before earnings and before expiration. But the point is that they can't make you sell and many holders of these call options ( and I'm one) refused to sell at the artificially low, rigged prices - which much of the time were below intrinsic value - and instead exercised and took possession of the shares. My understanding is that most of these options are sold by both market makers(who sell short) and mutual funds and institutions who sell them for extra income. These removed shares will have hit the accounts of the MMs and funds after the market close Friday. Assume for the sake of argument that COMS was already revving up its engines for the move to the upside (I know YOU at least, Joe, don't disagree with me on this point) and add to this the MMs etc who find themselves Monday AM short shares they never wanted to lose - or just plain short - and you may have a very volatile upside breakout. How volatile? Who knows? but I'm still predicting trades tomorrow above 31.

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