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

To: Emec who wrote (4674)	5/29/1998 10:28:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Has anyone noticed the number of open contracts for June 30 calls? Very large. Someone is expecting something very positive soon whether it is earnings next week or some other type of news Since they haven't warned and they have a history of saving news for major shows, I'm guessing they have something for Atlanta the second week of June. Pat

To: Emec who wrote (4674)	5/29/1998 2:51:00 PM
From: Mark Kubisz	Respond to of 18016

My knowledge of options is shaky, so I'd appreciate some explanation. Buying a call gives someone the right to buy a security in future at a certain price, which will be above the current price, correct? That being the case, wouldn't a more positive sign be if the options were trading at high volume and at a premium to the current price? If I understand correctly, then saying there is a lot open interest is saying that a lot of people are wanting to buy, but not badly enough to pay the current asking price, right?