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

To: Jay Mowery who wrote (20850)	2/22/1998 10:41:00 PM
From: MichaelJ	Read Replies (2) \| Respond to of 36349

Jay, Piper, all Let's keep our heads screwed on about selling puts. All an investor is saying when (s)he sells puts is that (s)he would be willing to purchase 100 x (the number of put contracts sold)shares of stock at a price equal to the strike price minus the premium received for selling the puts. For example, right now I am short 10 April 20 puts. I received a premium of 3.50 per share for those about three weeks ago. You better believe I won't mind buying 1000 shares of PAIR at (20-3.50)=16.50 per share between now and April expiration if Pair falls back below 20. My opinion is that Pair will not revisit 16.5 in this time frame. Simple as that. And if PAIR stays above 20 between now and April expiration, I won't mind spending that $3500 either.... Good luck all, and Go Pair MichaelJ