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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (1421)	1/20/2000 11:55:00 PM
From: Theophile	Respond to of 8096

LOD, I did look at WCG and WMB as well. ENE was a bit better positioned IMO, and ENE was listed in a Mauboussin report I studied, using ENE as an example of a progressive company that used options theory in deploying its capital projects priorities. Long story, but the idea is ENE is not afraid to invest money into keeping its options open for future growth, sort of like an option to buy in real estate, the same concept is applied to valuing the options present in any capital venture. Those options are worth something, and must be included into the net value of any project. This is termed 'real options value', I believe. <<<>>>> I decided to begin looking at a company called CYMI, a thread exists here on SI. It is a laser (DUV, deep ultra violet) producer for chip manufacturing. I will post what I learn if I find something of interest. Martin Thomas

To: SecularBull who wrote (1421)	1/21/2000 2:53:00 AM
From: Theophile	Read Replies (1) \| Respond to of 8096

LOD, when I looked at WCG previously, it was not in the context of options. After looking at the options available on WCG, it would appear there may be some real value here. Thanks for the ticker, I will monitor. Martin Thomas

To: SecularBull who wrote (1421)	1/21/2000 6:19:00 PM
From: Theophile	Read Replies (1) \| Respond to of 8096

LOF, thanks for the heads up on WCG. Originally I had examined it from the perspective of a replacement for an ailing utility stock, but since it was a recent IPO, it was a no-go. From the perspective of an options investment, it is more of a no-brainer....using the limiting downside of options on a fiber IPO with serious upside potential seems to be appropriately intelligent. Now I can follow the play through the interest rate hurdles and keep a position with limited risk. I went long on ATM calls, AUG35 for WCG. That was the longest and highest call on the chain. As well, I closed the remaining APRIL55 on ENE this morning. I will monitor ENE for interest rate sensitivity and take the common long once I am satisfied with the price picture, to replace the Ute that was recently liquidated. While CYMI was down a few points I went ahead and bought some AUG65 calls, the longest and highest available. MT