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

To: JB who wrote (2171)	2/17/1998 9:48:00 PM
From: halfscot	Read Replies (1) \| Respond to of 11568

Yes, I couldn't believe how cheap the options were. Late last week the options, including the LEAPS, were trading at almost NO PREMIUM whatsoever. I almost jumped on some more but the next day when the stock moved through resistance about two points of premium suddenly appeared on my Jan 99 25s. Missed a good opp. although premiums are still remarkably low due to low Implied Volatility. If WCOM makes a big move upward, say a whole point or two, then IV will increase and more premium will appear. Good Luck, halfscot

To: JB who wrote (2171)	3/1/1998 4:39:00 PM
From: Allen Furlan	Read Replies (2) \| Respond to of 11568

Curious, why not mcic July 50 calls at same price? WCOM confident of merger which may close sometime in late summer. My understanding is that the 1.2439 ratio is a fixed collar at wcom prices over 41. For example if the closing price of wcom at June expiration is 45 then mcic would have intrinsic value of 56. Of course MCIC might lag because of market vagaries but would still almost certainly be profitable, albeit perhaps less profitable. More importantly if WCOM down from here, mcic is defensive play even if wcom dips to 29, and in such case mcic options would have some time value whereas wcom would be worthless.