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Technology Stocks : Keane The leading y2k service provider -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (519)	5/11/1998 1:08:00 AM
From: eabDad	Read Replies (1) \| Respond to of 1316

L3 and Ben: The options "pain" analysis is very good during expirations week, particular during months in the "quarterly cycle." Since KEA is on the February cycle, the months of Feb, May, Aug, and November have durations of open interest up to 8 months, while the other expiration months are maximum two. In my experience stocks close within 1/4 of two prices on expirations week (more often than random chance dictates) - at a strike price or midway between strikes. Price action during the week sometimes generates a "shake out" of open interest, since not all open interest has to be long. I would expect some wild gyrations this week, where we could see anything between 43-49. Like L3, my bet is a shade below 45 at week's close. A day trader could take advantage of this if KEA hits 49 or so on Mon or Tues by buying May or June 50 puts. Z