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

To: Ralph E. Daugherty who wrote (19261)	1/23/1998 5:42:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 36349

Still hanging n here. Haven't posted in a while, so thought I'd let you know that I bought 5 Feb20 call contracts on Pair. It's my first time to gamble with options. Paid 1.125. Also still hanging long. Ralph, Instead of buying calls (80% of which expire worthless), think about selling puts if you are bullish on the stock. I learned this tactic from Glenn Rudolph, to whom I am deeply indebted. For example, I recently sold Feb 17 1/2 puts for about 1.5 points. If at expiration PAIR is anywhere above 16, that translates into a profit. To be sure, the profit is capped at 1.5. The benefit of selling a put is that you take in time premium. Unlike a call, where you pay out time premium. Given the limited upside, though, you might want to both (1) sell puts (to cover minor gains) and own the stock outright (to cover larger gains). But the total that you own should not exceed your exposure tolerance assuming that all the position was in raw stock. Gary Korn

To: Ralph E. Daugherty who wrote (19261)	1/23/1998 6:19:00 PM
From: Jay Mowery	Respond to of 36349

Hi Ralph, Feb. 20's bought at 1.125 looks like a good bet to me. If things go well next week they may be a real good deal! Glad to hear from ya! I'm long and sold some Feb 20 puts. 5 contracts at 2 5/8. If we can get a bump up nex week, I'll probably close the position and look at the calls if we can get into the 22.5 to 30 range with a descent premium. Actually I've worked down to 29.00 which is four bucks below my basis a couple months ago. Slow goin' but I'll get there. We get a run to the 30's I'll take some profit and reduce the basis and buy back on the dips. Good hearin' from ya Ralph! Hang in, I plan on spendin' New Years 1999 on the PAIR thread!(Either I'm crazy or just too lazy to move!) Heck it's as good a bet as anything else I've seen. Best Regards, Jay