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

To: Spartex who wrote (22837)	6/22/1998 12:21:00 PM
From: Ghassan I. Ghandour	Read Replies (1) \| Respond to of 42771

I said they don't AUTOMATICALLY exercise until the option is 3/4 in the moeny (at that too is at their discression according to their little pumphlet on options), but the option buyer may (at any time for that matter) get the stock away from you. The cases I mentioned though were all about small number of contracts (5) so it wasn't worth the commision for the guy who had the option to exercise (I guess). What I wonted to point out was the 3/4 as people were mentioning 1/2 or less as when the brokerage exercises automatically for you (maybe it differs between houses and maybe even Shwab changed since I last read their bochure). Paul - I usually sell the call when the stock is in a rally and I am tempted to sell it. I choose my strike price above my buying price of the stock so that, if it goes, I would make more money than if I sell right away. When I really like the stock, I sell covered calls as well as naked puts to effectively make the premium higher. Rarelly (as it is too dangerous) I sell the calls naked then buy the stock to cover at the first opportunity. This is what I did, last time, with NOVL as I sold the stock (the first time it reached 11 3/4) and also sold the calls. I later (whithin a week) bought the stock back in the 12ths. I still hold it and will see what to do with it soon as I think, with unsure revenues, it may not hold its place here for long. I saw quite the same thing going on with INPR (formerly BORL) last month. The stock had rallied to 12 with all analysts having a buy recommendation on it. I suggested people trade it for NOVL (under 10 at that time) but momentum "investors" were laughing at me. Now the stock is back to 7 and small change (I did buy it again here). Well, that is the game... Ghassan. Note: People should not follow what I say unless they understand very well the risks involved... Some of the stocks I am holding are down big time, right now, in this DOG of a market. Ghassan.