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

To: ratan lal who wrote (7977)	11/24/1997 1:21:00 PM
From: SJS	Read Replies (2) \| Respond to of 21342

I don't get it either. I would have SOLD this spread, not bought it. If you buy it, you think that a big move is going to be made. Do you really think that WSTL will be higher than 21 3/8, or lower than 13 5/8 by December? That's a huge percentage move in 5 weeks... Steve

To: ratan lal who wrote (7977)	11/24/1997 6:37:00 PM
From: Timothy K Robbins	Read Replies (1) \| Respond to of 21342

ratan Based on some TV(time - value) tables I have and closing the option spread is closed by the end of the first week of December. If the stock reaches 15.25 or 19.25 during the next two weeks, the put(@15.25) or the call (@19.25) can be sold for about 1 5/8. This will cover opening both positions and closing one (including commissions) for a small profit. The other position can then be closed for it's remaining value or kept another week in hopes the stock will move the "other way". The volatity of the last few months makes this an exceptable risk(IMHO). If the time factor bothers you, try the samething with the Jan or Mar options. GLA Tim