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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Rich Wolf who wrote (14642)	9/17/1999 2:37:00 PM
From: Bob Childers	Respond to of 27311

Rich, Harold- Thanks for your discussion, which never-the-less leaves me feeling a little over my head. I've never followed options this close before - and it is a much more subtle game than I imagined. For that matter, the whole short attack and surrounding discussions was instructive. Still, the clock ticks, and those playing fields are gone with the first large PO. Sounds as if the EPS sale is coming soon, and then... Regards - Bob

To: Rich Wolf who wrote (14642)	9/17/1999 5:25:00 PM
From: Harold Hertzfeld	Read Replies (1) \| Respond to of 27311

Rich A market maker (MM) could have bought these 700 options in order to purchase 70,000 shares of VLNC next Monday at a guaranteed $5 price per share. He might use these shares to close out a short position. The option volume today was very low, indicating that substantially all of this open interest of 1400 + shares would had to be closed out sometime today by exercise. In my above message I understated the return potential on the Buy Stock Sell Dec 5 call strategy. Without commissions the net price paid for Valence is about 4 dollars per share. So, if the stock price were over $5 per share in December at the exercise date, the return would be a 1 dollar gain on a 4 dollar investment for 3 months. What kind of percentage gain is that? The stock action was very encouraging today. Harold