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

To: Jean M. Gauthier who wrote (3055)	2/16/2000 6:35:00 PM
From: Poet	Respond to of 8096

Jean, That's a delicious conundrum. Here's an idea for a very bullish play, since I'm very bullish on JDSU: Sell your calls the day before the split happens (March 10). Wait for a post-split pullback, then use the proceeds to purchase JDSU July or Sept calls, still DIM, but higher strikes than the 120's. You'll be able to buy more and capitalize on the next run. There are lots of other ideas, I'm sure. Just my 2 cents.

To: Jean M. Gauthier who wrote (3055)	2/16/2000 7:10:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 8096

Can you afford to exercise now? Does it help your margin position to exercise? LoF

To: Jean M. Gauthier who wrote (3055)	2/16/2000 7:36:00 PM
From: Ritch	Read Replies (1) \| Respond to of 8096

Hi Jean If you are sure that you want to own the shares, then you need to ask if you will need the margin generated by purchasing the stock to buy something else. If you have to kick in $120 per share of cash or existing margin, you may not generate much more margin depending on what the margin requirements are at your brokerage for JDSU. I have been hearing that some brokerages have raised their margin requirements for JDSU as of late. If you are simply going to exercise the options and hold the stock (don't care about additional margin), I cannot think of a reason to exercise them early (that doesn't mean that there aren't any<g>). You may as well wait until expiration and use the $120 per share to play something else, or just collect interest on it. Ritch