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

To: Ben Antanaitis who wrote (22818)	6/21/1998 6:51:00 PM
From: Paul Fiondella	Read Replies (1) \| Respond to of 42771

NOVL open interest NOVL 12.5 Call finished at 3/16th with 1494 contracts traded and 6862 open contracts at the end of the day. NOVL 10.0 Call finished at 2 11/16ths with 135 contracts traded and 5416 open at the end of the day. The stock finished at 12 3/4. Now 1227800 is the number of shares represented by those open contracts. (Not 1.4 million but certainly not 117.6 thousand!) I see two possibilities with this open interest. Either the contracts were not exercised and expired or they were exercised and the shares have now to be produced. Those two possibilities represent the entire open interest total(?) at the end of Friday. The 10's all had to have been exercised. Maybe a fair proportion of them were covered calls but all that means is that these shares are now in somebody elses trading hands. The option holders are due the rest of those shares. The 12.5's are divided between those that expired worthless because of the compression to 12.75 and those exercised without the transaction being completed by the delivery of shares. Is this your opinion?