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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Miller who wrote (2321)	6/17/1998 4:52:00 PM
From: Kurt Goebel	Respond to of 10081

Amex to Trade Options on General Magic, Inc. PR Newswire, Wednesday, June 17, 1998 at 16:08 NEW YORK, June 17 /PRNewswire/ -- The American Stock Exchange today announced it will trade options on the Nasdaq National Market-listed stock of General Magic, Inc. (NASDAQ:GMGC/GCQ) beginning Wednesday, June 24. General Magic, Inc., is a communications software firm. The company, based in Sunnyvale, California, develops and offers technologies designed to simplify communications and manage information resources. The company is developing a service that will integrate voice and data information. GGQ will open with strike prices of 10,12-1/2 and 15, with position limits of 25,000 contracts. Initial expiration months will be July, August, November of 1998 and February of 1999. Cohen, Duffy & McGowan Inc. will be the specialist unit for the new options. The Amex trades options on 30 broad-based and sector indexes and 961 domestic and foreign stocks, as well as Long-term Equity AnticiPation Securities(R)(LEAPS(R)) on 114 stocks. The Amex is a leader in listing warrants and foreign currencies and hybrid instruments and other products. Visit the Amex web site located at amex.com. SOURCE American Stock Exchange -0- 06/17/98 /CONTACT: Yolanda Cain of American Stock Exchange, 212-306-1671, or ycain@amex.com/ /Web site: amex.com

To: Jerry Miller who wrote (2321)	6/17/1998 5:27:00 PM
From: Mark Oliver	Read Replies (1) \| Respond to of 10081

<...and if we assume that the AMEX comes correct, and offers these options as well, wouldn't these exchanges need to own the stock.> No, it doesn't really work that way. The whole issue of options involve contracts to buy or sell at a price. Just like NASDAQ, the options market makers are just brokers who stand between the buyer and seller. They are doing lots of tricks to create positions when there is no buyer to match a seller or vice versa. It's too complicated to explain, but the main thing is the added exposure to options mean the GMGC has graduated to another level as a stock. Sometimes options create an extra force to push the share price around for both good and bad. You can use options to protect yourself through the purchase of puts and you can get extra income when you sell calls. You can also leverage your money buying contracts, but that involves more risk as it has a limited time position vs a share purchase which lasts as long as the company trades. Regards, Mark