Borland and Open Env - RAD For the Inter/Intra Net Message Board

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Technology Stocks : Borland and Open Env - RAD For the Inter/Intra Net

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To: henry wuan who wrote (44)	12/31/1996 3:47:00 PM
From: George Lazar	of 70

Henry, Thanks for the option explanation. Just to let you know I trade options in the last 15 years... BORL "open" interest is not a gauge because it doesn't signify anything. High open interest in calls doesn't automatically mean bullish sentiment... especially in spread trading.... E.g.: A trader may sell same expiraton BORL 7.5 calls and buys(!) the 10 calls to hedge the position. In this case the long 10 call position is not a bullish indicator ... in reality, the buyer of the 10 call is hoping that BORL will remain under 7.5 !!... so the high level of open 10 calls relative to the open 7.5 calls can be very bearish sign..... Hope this helps... -george

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