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Biotech / Medical : Agouron Pharmaceuticals (AGPH) -- Ignore unavailable to you. Want to Upgrade?

To: Lee Solomon who wrote (3142)	12/4/1997 1:34:00 PM
From: Joe E.	Respond to of 6136

<<Since this position is still open I believe these puts were sold by an investor or fund expecting the price to rise. Now the question is how will this position effect the stock price through the Dec option experation? My guess is that AGPH will stay depressed significantly below 40 so that these puts can not be rolled forward again and will expire worthless. I hope I'm wrong because I am long.>> The existence of the puts will tend to cause the stock to close at 40 at the time of the expiration, all other things being equal. On the other hand: 1. The puts represent only 400,000 shares. 2. Short interest when last reported was at 7 million. 3. So far today, 1.5 million shares have been traded. 4. The stock is at 28.5, well away from 40. The above four points, in my view, suggest that the effect of the puts will be very small relative to the effects of the other things that move the stock price. So I would not worry about the puts impacting the stock price, unless the price gets to the high 30's by mid December.

To: Lee Solomon who wrote (3142)	12/15/1997 2:28:00 PM
From: Lee Solomon	Read Replies (1) \| Respond to of 6136

Is anyone still interested in those 4000 Dec 40 Puts? They've been rolled again. This time to Feb 30 Puts. On Dec 4 I wrote: "Since this position is still open I believe these puts were sold by an investor or fund expecting the price to rise. Now the question is how will this position effect the stock price through the Dec option experation? My guess is that AGPH will stay depressed significantly below 40 so that these puts can not be rolled forward again and will expire worthless. I hope I'm wrong because I am long." Dec 40 Puts are going for about 11 bucks and Feb 30 Puts are going for 4. Whoever has this position must be VERY BULLISH on AGPH because it just cost them 7 points to stay alive (this is in addition to their original investment). 7 points in this case is $2,800,000.00