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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (177367)	4/3/2004 1:49:59 PM
From: Elmer Phud	Respond to of 186894

Lizzie - Now that I've had a chance to hear you expand on your point, it's a good one. I must admit that I haven't followed this options expensing issue very well. As I understand it from a previous poster today, the idea is to expense the time value of the newly granted options, as if they were leap Calls. This makes sense only if the company would have otherwise written leap Calls on the open market but is now prohibited from doing so because the unissued shares are now tied up covering the options granted to employees. Otherwise there is no opportunity lost. While I know Intel employees who write leap Calls against their unexercised options, I am not aware of any company doing this on their unissued shares. Maybe they should? I know Intel has in the past written Puts when they were planning a buyback so playing the short option game wouldn't be new for them.