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To: Knighty Tin who wrote (31126)	8/14/1998 3:48:00 PM
From: PaperChase	Read Replies (2) of 132070

MB. Great call (again) on CIEN. I do not have a position in TLAB or CIEN but have enjoyed watching you make money. <g> Since I can't figure out which way TLAB is going to trade these days and since I think it'll start swinging greatly in price, I am considering a long strangle with a November expiration. Here is what I do not understand: 1. TLAB will merge with CIEN in a share-for-share transaction but TLAB is trading at $57 and CIEN at $51.75. Why this disparity in price? 2. TLAB November Call and Put prices are very confusing. At TLAB's $57 stock price I'm seeing Nov 55 CALL CQZKK @ $1 3/8 !! (NOV 60 Calls not listed yet) and I'm seeing Nov 55 PUT CQZWK @ $14 !! I can't figure out why TLAB's option costs are so far off relative to its underlying stock price and so I have kept my option money on the sidelines for now. Thanks for your help in understanding this situation. Do you think a long strangle is the best way to play this volatility?

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