Novell (NOVL) dirt cheap, good buy? Message Board

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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: Paul Fiondella who wrote (23141)	7/20/1998 12:42:00 PM
From: Ben Antanaitis	Read Replies (2) of 42771

Paul, Autoexercise is not a theory, it is a fact-of-life of the options trading mechanics. Read the CBOE and the OCC rules of options trading, you cannot trade options without being subject to the rules. The CBOE statistics on Saturday show the numbers of contracts that were 'in-the-money' and what strike price they were written at. What someone paid for them is not relevant when you have been autoexercised. If they were 'in-the-money' by any amount over the brokerage houses autoexercise threshold, they were autoexercised. Per my last post, the $7.5's and the $10's were all autoexercised, some fraction of the $12.5's may not have been deep enough 'in the money' to be autoexercised. So there are 30 $7.5 contracts and 2608 $10 contracts plus some large fraction of the 2811 $12.5 contracts that were delivered to new owners this morning for purchase. This gives us ~500K shares being offered to buyers at the given strike prices+commissions. Could/did they purchase and hold or did they dump? I haven't a clue. But something spiked the price down on selling pressure this morning. And you did ask for opinions. Ben A.

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