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

To: Ralph E. Daugherty who wrote (20831)	2/21/1998 1:52:00 AM
From: Purebull	Read Replies (2) \| Respond to of 36349

Ralph, enjoy. marimba.com

To: Ralph E. Daugherty who wrote (20831)	2/21/1998 9:43:00 AM
From: Jay Mowery	Read Replies (2) \| Respond to of 36349

Hey Ralph, Ralph, Now I got it. A suggestion for you and I'm not sure this will work any different, Porc and Patriot can tell you if I'm off base on this. I'll give you an example it's the easiest way I know. Instead of buying the calls in that situation, sell puts! That way somebody is paying you. I sold Feb. 20 at 2 5/8. As PAIR moved up the price went to 5/8. I bought the puts back and closed the position, with a $2.00 a share gain. Then I looked at where I thought PAIR would be in March and picked a price I thought would be reasonable to pay if PAIR took a dive. They were paying 2 5/8 for the March 22.5. So I sold Mar. 22.5 puts. They PAID ME 1200.00 and change for them. So I got THEIR money. In this case, Ralph. If PAIR goes below the strike price and the options are exercised. I have to buy the stock,but I'm actually only paying 19 7/8 as the differance to 22.5 is their money. If PAIR goes up, the price of the puts goes down and I keep all or part of THEIR money. Depending on weather I buy the puts back and close the position or let them expire.Also in closing the position I can roll to another one and have them pay me again. There are a couple of down sides to this way though too: 1) If PAIR gets hammered and falls to 15.00. I gotta buy it at 22.5 which is still 19 7/8 because part of the money is theirs.(What I got for selling the puts 2 5/8). But believing PAIR is a good company and will come back. I don't mind the risk as they are PAYING ME to take it. 2) You are limited to what you can make. Since if PAIR takes off you can only make the premium. Just another idea Ralph. I hope it makes sense. Best to ya buddy, Jay