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

To: joe smith who wrote (20307)	2/6/1998 11:23:00 AM
From: Jay Mowery	Respond to of 36349

joe, Sorry! I was typing too fast. You buy the calls back at their current price or let them be exercised. Example: I just bought back my feb 20 puts at 5/8 making about a grand. I then immediately SOLD March 22.5 puts for 2 5/8 picking up another $1250.00. Now I got $2250.00 in my account, all other peoples money. Worst case, The March 22.5 puts get exercised. I still made $1000.00 on the Feb. puts and I get 500/shares of PAIR at 19 7/8. If I calculate in what I made on the Feb. puts. I really only have to pay 17 7/8 if the March puts are exercised because the rest of the money came from other people by selling the puts to them. Here again joe hope this is clear. This stuff is cool once you get the hang of it. The stock simply becomes collateral. Best to ya, Jay