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

To: joe smith who wrote (20259)	2/5/1998 10:21:00 PM
From: Eugene M O'Donnell	Read Replies (1) \| Respond to of 36349

Joe, 1. You will probably not get hit until the expiration date. It is easier to trade options than to exercise them. 2. Theoretically, option contracts sold in the US can be exercised at any time, but practically they get used on the 'last day'. this is the reason 80% expire worthless. It is like insurance, it is only worth something when you actually need it! 3. If you sold calls, you must sell at the strike price, and pay commission (ouch!). If you sold them naked, this could really hurt, since you have to buy the share (with commission and split) and then sell them (same story). If they were covered calls, there is only the one-way hit on the commission bid/ask, so it only hurts half as much! Live and learn! GENE BTW Fine technical trend upwards due to the nice move thru the 50 day MA on hot 3.5M volume today for the TA types!

To: joe smith who wrote (20259)	2/5/1998 10:54:00 PM
From: Jay Mowery	Read Replies (1) \| Respond to of 36349

joe, Your options can be exercised at anytime is true but I know on the puts you've got till the 3rd Friday to buy the stock. I don't know if the calls work the same or not. I also know sometimes they don't get exercised as soon as they hit. My puts feb 20's technically should have exercised at 17 3/8 or below. We spent several days there and below and nothing happened. Getting in a hurry isn't always good either. I'm in PAIR since last Feb at 28 and change at this point but I still intend to come out with a healthy gain. The options I'm using to bring my basis down while PAIR moves up to meet it. They'll eventually cross and I can go to black and gains. Hang in joe! "I've learned everything I know the hard way but I've learned!" Something I heard Joey Gallo say in an interview. Makes sense to me! That's all any of this is about. The money will come if we learn! Have a good one joe, Jay

To: joe smith who wrote (20259)	2/5/1998 11:36:00 PM
From: Greg Thornton	Respond to of 36349

You can always buy the calls back, you'll just pay more now that you got for them. If you are afraid you are going to miss a big move, get out of them now. Greg

To: joe smith who wrote (20259)	2/6/1998 1:05:00 AM
From: margin_man	Read Replies (2) \| Respond to of 36349

Joe, Now I have more info. to work with. If you don't buy back the call and PAIR continues to move up, you'll loss 1/4 (you knew that) + commissions (if the calls get exercised). The Feb 20 call is at 1 5/8 x 1 3/4. IF PAIR gaps up tomorrow, the calls would also go up. If you don't want to cover the call at higher price, then do some good use of the premium you received such as buying other options. I like the APRIL options because it's the month of earnings. If you can buy back the calls tomorrow for less, do it unless you believe PAIR won't close above 20 at the expiration. Good luck. Patriot