At the bottom of my message, you will find a "jas" message:
For all these companies being bought there is a risk. On top of that you are dealing with MM and these guys can wait a long time without changing the price of the calls, and they will never buy the stock for more than 36. (Notice on Tuesday early morning you could sell the stock for 36 1/4) So you have the choice of selling your calls, exercising the calls (you will have to pay commissions) and giving your stock to Alcatel. I would sell the calls: you will get the money immediately and you will not be greedy! Someone else will make a buck! Good luck!
Joe
To: Steve Hursey (4082 )
From: jas cooper
Wednesday, Mar 3 1999 10:20AM ET
Reply # of 4099
Seems like a no brainer to me.
It might seem that way, but it ain't. What you are making a few percent on is the risk
that all will not go as expected, however small.
Then don't forget that you have to pay margin interest, and your money could be making
more elsewhere (hopefully). Remember, your typical XYLN shareholder is someone
looking for substantial gains, not a guaranteed income from a collection of CDs.
If everything was assured, the stock would have opened (and closed) at $37, and
wouldn't need to trade for the next month.
TLAB/CIEN and BT/MCIC (before WCOM saved them) weren't that long ago.
jas.
|
