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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (21296)	3/20/1998 4:33:00 PM
From: Spartex	Read Replies (1) \| Respond to of 42771

Steve, Yes your explanation helps, but I'm surprised that any option under 3/4 just gets thrown in the toilet. It may depend on ones brokerage house I believe, and if one wants the shares, and the bid is still 1/2, I think they give you the right to buy them. Conversely, the brokerage house can clear them for you automatically if a premium still exists. Not sure where Schwab's cutoff is, but I believe its below 1/2, and above 1/4. Again, I don't work in the business, but thought those were the choices. Regards, Quad-K

To: Steve Fancy who wrote (21296)	3/20/1998 10:00:00 PM
From: Ally	Read Replies (2) \| Respond to of 42771

hi Steve, >>The clearing house (OCC) will automatically assign options with 3/4 point or more intrinsic value at expiration. Any option not cashed out with less than 3/4 point value at expiration, just dies I believe, the buyer just put the money in the toilet<<. ..mmm... I had always thought that there is a break-even point.. however, 3/4 seems plenty. Wouldn't it be more like 1/4 ? Just a guess. p.s After posting above, I read your subsequent post. 3/4 still sounds too much. d.