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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: chenys who wrote (17131)	6/8/1998 8:58:00 PM
From: joe	Read Replies (2) \| Respond to of 45548

Hold on q y chen, let's make sure we understand these first. I still have gaps in my knowledge of options, so you may know much more than I do... >>Do you know when those 2100 contracts for THQFZ (June 32.5 call) happened and how they came to that much (one time surge or over a period)? I found the last trade (1/8) was at 10:44am. What was the ask/bid at that time? << I don't know anything more than the link that I posted. The way I understand it, the 2100 contracts were transactions done today. Last trade at 10:44am - you probably found that at another site? There's still some things I don't fully understand about options, and when I get time, I will dig into it. But the way I look at it, whenever a transaction is made, there is a buyer and seller. Somebody today, wanted to hold calls at that price. I wouldn't want to have them, unless I had some extra information...I don't know what that could be.... >>(32 1/2 + 1/8) (1/8 being their cost) before 06/19!<< If I use this logic on some of the other calls, then I get a) 27.5 + 13/16 = 28.1325 b) 30 + 3/16 = 30.1875 c) 32.5 + 1/8 = 32.625 So, I get different prices. I'm not sure how to put all this together. I've done this in the past, and usually the numbers come out much closer. *I forgot to mention this one** Today, there were 1280 contracts for the Oct 22.5 put @1 5/16. Boy, this is extremely pessimistic. Maybe this is a hedge fund concocting a very complicated derivative, where he's projecting far into the future....and trying to defer risk of a very unlikely event, because he has a gigantic amount of money that he's putting on line...?? Another words, he's taking absolutely no chances on 3Com damaging him, but at an expensive price. So expensive, for an unlikely price, that he could be expecting to more than make up for it with a huge profit, because 3Com will be at a much higher price by then....I guess there's always 2 ways to look at these things... Anybody, care to take a crack at interpreting this?