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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Alec Epting who wrote (10)	12/5/1997 2:45:00 PM
From: Patrick Slevin	Respond to of 8307

Not necessarily. It might be just a bullish buy. On the other hand, ....They could be short 2,000 7.5s for example. As I said, option activity has been hot for about 2 weeks or so. It might be anything. Someone could be short a net of 200,000 shares over the period of time it took to drop the stock from 11, for example. All I'm saying is, granted there were 2,000 calls purchased; but why they were purchased is beyond any guess I could make with any certainty. For all I know, due to the action recently in the options someone speculated on a run-up and is quietly bailing out slowly into this rally.

To: Alec Epting who wrote (10)	12/5/1997 2:53:00 PM
From: NeverRight	Read Replies (1) \| Respond to of 8307

Here's another possibility. It's very Machiavellian but so is the business. Let's say a big investor is holding 500,000 to 1 million shares, and he wants to unload some or most of those shares. If he dumps them all he gets killed on the execution. However, if he buys 2000 contracts for a measly 1/4 point he gets everyone looking for the stock to go up, and buying. He then can sell into the rise. I hope this isn't the case, since I went long yesterday, but let's not lose sight of all possibilities.