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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: KFE who wrote (1472)	6/1/2000 10:30:00 PM
From: PAL	Respond to of 2317

KFE: You are right. This has happened to CSCO which usually split 3:2. Each contract is thus for 150 shares on the adjusted price. Some people were surprised when they exercised the call since more funds were needed to cover the 50% additional shares. CBOE will decide how to handle option in the case of a company's restructuring such as spin-off (att spinoff lu, ncr), mergers, etc. Regards Paul

To: KFE who wrote (1472)	6/3/2000 11:12:00 AM
From: WTMHouston	Respond to of 2317

Ken: I appreciate the response and the info. I knew that if I did not get an answer from someone here, I could go hunting on the CBOE site, but, I figured that one of the many knowledgeable folks here could (and would) answer it much more simply and quickly (and save me a ton of time in the process). You did and it did. Thanks for helping -- it is one of the great things about most folks on SI. FWIW, and I am not suggesting anything more than looking at it, VSH has had some pretty hefty premiums lately. That said, Q2 earnings are likely to be VERY strong (could be more than 40% to 50% sequentially above Q1). They should be announced either the last week of July or the first week of August. As always, everyone should do there own DD. Troy