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To: TheBigB who wrote (7509)	2/19/1998 6:05:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 27307

BigB, the big OI in April 40 calls appeared late December, when the stock was making its high. Many of us here figured it was large holders hedging and pocketing a big chunk of the value while deferring the gain to this year. Deep in-the-money calls would accomplish that better than any other hedge since congress took away shorting against the box as a deferral method. Most were sold at about $29 BTW. Bob PS: Sequoia really sold or distributed 2.4mm shares? But why would they sell now, just when we were headed to $130? Yipee!

To: TheBigB who wrote (7509)	2/19/1998 8:50:00 PM
From: Don Earl	Read Replies (2) \| Respond to of 27307

Hi Big B, Total pay out of all April options: @ $75---$27,453,000 @ $70---$22,099,500 @ $65---$17,143,500 @ $60---$13,201,000 @ $55---$10,857,000 @ $50---$8,980,000 @ $45---$7,755,500 @ $40---$7,241,500 @ $35---$10,006,000 There is a lot I don't know about options, and I doubt I'll ever own half a million shares of 60 dollar stock, but you bring up some interesting possibilities. What if someone with half a million shares were to sell uncovered calls? They could pocket the premium and still dump the stock at key support levels. Also, if they have had the stock for any length of time they would be taking profits all the way down. All they would have to do is put in a market order to dump say 50K shares anytime it starts to rally and the bottom would fall out. If it's an institution that covers the company, they can also cut their ratings at key recovery points. The way it pulled away from a run at resistance today was encouraging. Unfortunately, I had an order in for some more puts that didn't get a chance to fill. I've also noticed that it can be hard to get an option order filled prior to a break out. It looks like a distribution pattern to me. If it is, we should see some confirmation next week. Regards, Don