Xylan Message Board - Msg: 8129350

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Technology Stocks : Xylan

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To: LakesideTrader who wrote (4089)	3/3/1999 12:55:00 PM
From: Al Paxton	Read Replies (1) of 4135

To all holders of options.. I own April 22.5 call options. They are bid 13 1/4 (stock at 35 3/4). The value of these options under the deal should be 14 1/2. A point and a quarter can add up to a lot of cash. (These options will expire after the deal has been done.) I called Etrade and I can't get a straight answer. I get one guy telling me I will need to exercise the option, take the stock and then Etrade will convert the stock into $37 a share when the deal is all settled. Another guy tells me Etrade will automatically convert my calls into cash since the deal is done before expiration of the options. I have no idea what this means for options expiring in March, which seems to be in the middle of the tender. Can anyone definitely tell me how I should close this position with minimum commission and maximum gain between the strike price and the buyout price? Thank you, Al

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