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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: mr.mark who wrote (36458)	11/21/1999 4:00:00 AM
From: Mang Cheng	Respond to of 45548

Cramer's take on the rise of coms and other companies : "Calls on plain old stocks just rocketed this month, causing a lot of the upside pressure. The open interest in Hewlett-Packard alone might have blown short-sellers away. Same with 3Com (COMS:Nasdaq), EMC (EMC:NYSE), Oracle (ORCL:NYSE) and Global Crossing (GLBX:Nasdaq), to name four others I saw some option-squeezing in. (Good news in expiration week shocked all of these stocks and caused terrific squeezes. Here is how that occurs. There are always people who are short calls to bring in income. If you were short the Hewlett-Packard November 90 calls with three days to go and the stock is at 77, you aren't thinking you have to buy those back. You are thinking they are going to go out worthless. That's just human nature. Maybe you sold them for a dollar and you figure, what the heck, why pay a 16th plus commission to bring that sucker in. It's going to be at zero on Friday. Suddenly the stock blows through the 80 and 85 strikes, you panic and buy common to make it so that you are "covered" or you buy back the call which can also cause upward pressure as call buying impacts the underlying common. This out-of-the-money to sudden in-the-money can really get stocks rocketing, as we saw in all of these cases. )