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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: Jacky AY who wrote (4009)	11/4/1997 4:14:00 PM
From: Sam	Read Replies (1) \| Respond to of 7841

"My feeling is that SEG probably had offseting option position and decided to write off the losing position first (maybe they're required to do so...)" If they had an offsetting position, they have made no mention of it. They must have sold some out of the money puts, I am guessing, thinking that they would expire worthless. Then the devaluation came, and put them farther into the money than they ever dreamt. Someone's head must have rolled for that. They have said, at least, that the "offset" would be their reduced cost of doing business in Thailand. They have to mark to the market such positions. That is why they had to take the loss last quarter. If the Baht recovers, they may reverse some of it. My understanding is that that these contracts won't all expire until next year sometime.