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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Mathon Dabasir who wrote (3857)	12/22/1997 4:49:00 PM
From: Bill Holtzman	Read Replies (1) \| Respond to of 14451

Mathon - You're right of course: >>I humbly contend, if anyone -sells- the JAN 12 1/2 PUTs they're -bullish- because a) they feel the stock is going up and the PUTS will expire worthless,<< My saying they would be bearish was a slip of the wrist! Indeed, selling puts is the equivalent of buying the stock if the stock goes down and the shares are put to you. In this case you get the stock for a net price less than you would've paid had you simply bought it on the same day. If the stock goes up instead, a sold put becomes simply a bet on the stock rising, but one which has a finite reward (the proceeds from the sale). To me SGI is at rock bottom. Unless they've done something really stupid like made some bad currency bets (as I've heard Dell Computer did a few years back) and ruined all chances for near term profitability, SGI can't go any lower. The takeover vultures have got to be circling at this price. Those are my thoughts, however, I plan to do some options analysis on the stock and look closely at the open interest and prices of late. Will share any findings. Bill