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To: Velocipher. who wrote (2600)	10/30/1997 2:15:00 PM
From: Big Dog	Respond to of 95453

Greg, I have been seeing FGII trade higher toward the end of the day...I think during the noon hour is usually the best time to buy. I have already bought and sold today for two points. I will likely buy again shortly and hope to make a half point or so going in to the close. What struck me about the conference call was the situation with the Canadian yard. What a great deal! FREE (My Momma always said if they are free take two -- and thats what FGII did -- two yards.) These yards are tremendous assets and will start printing money shortly. I think what I will do is sell the Feb 40's once the stock gets to about 40. Worse case my stock gets called at 40 (since my cost basis is about half that, I can live with it being called). However, what will likely happen is the stock will take a dip of 3-7 points SOMETIME before end February and I will buy back those calls. Also keep in mind the decay of the call price due to time passing. I will pocket about 9 bucks per share which protects down to 31-ish. Not a bad deal, plus I get the 9 bucks cash NOW. If anyone has any options strategies I would love to hear them. What I propose here is simple, but I would like to hear from some others about more sophisticated strategies -- like calendar spreads. mike