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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Paul Fiondella who wrote (22817)	6/21/1998 11:51:00 AM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 42771

Paul, Some were 'covered' calls... Those 'covered' shares just get transferred to the call buyer, from the call writer's account, with the bill for the purchase + commissions. I beleive they do not appear in the 'stock market' daily volume figures because the transactions do not occur in the 'stock market'. Anyone who was 'naked' has until end of day Monday to settle with their broker ie they must go out into the open market and buy the shares to turn over to the broker. That is why you see some very strange Monday's after expiration day's occur. If someone exercised or closed their option position on Friday (vs auto exercised after the close)... their 'open interest' disappears and does not appear in the final open interest tally. What % of the open interest at the end of the day is customers who have exercised their options? Depends on when in the month you are talking. During the month, it would be none. If you exercise, then that open interest goes away. On Expiry day, all 'in the money' calls get exercised by the system, either to the brokers benefit, or auto-exercised, which may or may not be to the holders benefit. But, open interest at the close around 1.4 million shares is not correct. The 'value' of the open interest is more like $1.5M... and at $12.75 it's only ~117.6K shares which is only a fraction of Friday's 2.8M share volume. That help? Ben A.