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

To: margin_man who wrote (23052)4/16/1998 10:22:00 PM
From: Rich Powers  Respond to of 36349
 
Patriot,

I agree with your question to Doug. Frequently, persons like myself can't afford to plunk down $2000 for 100 shares of a stock that they believe has a lot of upside potential. So they pay 1 1/2 for 10 April 20 call contracts when the stock is trading near 20 and if the stock goes up to 25 prior to expiration at April 17th, they sell 8 contracts, take the proceeds, exercise the two remaining contracts, and buy 200 shares of the underlying stock (PAIR). In this case, they have put out $1,500 (not $2000) and now have 200 shares of Pair instead of 100 shares. I fail to see how this strategy has hurt the Pair longs.



To: margin_man who wrote (23052)4/17/1998 8:13:00 AM
From: Doug Bean  Read Replies (1) | Respond to of 36349
 
Patriot:
My post was meant to speak to "investors" who buy options where they would profit by the stock falling. Or fot that matter even some who get out at the least of a rally thereby effectively killing it.
They do not think of "longs" and thats okay. i have no sympathy for them.
Trying to get ahead by the injury of others is not a admirable cause in my book. In other words i don't like shorts. Sorry
CRDoug


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