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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (1493)	7/15/1998 3:06:00 PM
From: Timothy R. West	Respond to of 8307

There are 10,000 DEEP IN THE MONEY JULY CALLS open in EGGS and that will mean 1,000,000 shares will be delivered to the call owners. You have to figure that this could be a catalyst for moves in EGGS. If the call holders don't want the stock, then they will sell their calls and lead to a selloff in the stock. You have to figure that most of these calls (starting from 5.0 strike, 1645 open interest) were just at or way OUT OF THE MONEY at the time of purchase. (assumption) I would assume that these are SPECULATORS and not willing HOLDERS of EGGS common stock. These calls will be sold most likely and lead to a downtrade in EGGS towards the 17.5 to 15 area at expiry. IF NOT, then EGGS is in strong hands.