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To: Art C. who wrote (6334)	2/26/1998 8:31:00 AM
From: jmac	Read Replies (2) \| Respond to of 42787

I buy relatively deep in the money options. I have been doing this for more than 15 years. When MRK was at 115 1/2, I bought the Feb 110 calls for 6 1/2. Not a lot of time premium. MRK closed out Feb option series at 124 (if I remember correct). I was able to sell the Feb options on the close and buy the Mar 110 calls for only an extra 1/2. That 1/2 represents a minimal time premium. Now, had I bought the Mar 125s, then I would have bought a tremendous amount of time premium.