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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: P.M.Freedman who wrote (3936)	3/31/1998 5:19:00 AM
From: saju chacko	Read Replies (1) \| Respond to of 18016

NN is not a good stock

To: P.M.Freedman who wrote (3936)	3/31/1998 8:04:00 AM
From: Brett Nelson	Read Replies (1) \| Respond to of 18016

P.M. Freedman - If my options analysis is faulty (which it very well could be) perhaps you could elucidate your own interpretation of yesterday's activity. My post was one interpretation. To Ahmed's point, it seems the open interest figures are yesterday's numbers, as open interest as of this morning appears more symmetrical between the April 20 and 25. The problem with open interest data is that it does not indicate whether those options are long or short. Yesterday's activity could just have easily resulted from a bull spread (buying the April 20's and selling the April 25's). But this position would risk 4 3/8 to make 5/8 - less attractive risk/reward. The bottom line is that open interest in calls is significantly larger than OI in puts. If someone were truly bearish on NN, puts would represent a much safer and cheaper way to express that opinion.