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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (19386)	7/19/1998 11:32:00 PM
From: chenys	Read Replies (1) \| Respond to of 45548

Joe: Those huge call OI's must be partly long, partly short, so there could be some being called away while some being forced to buy to cover. And whatever happen, those who lost their holding will be anxious to get back on the bandwagon, and thus they would buy back the stock. That being the case, there will be some stagnant period, say a few hours, before the excitement gets started. But a breakout is imminent. It appears to me that something very secretive is cooking, judged from the high volume and the way the price has been acting.

To: joe who wrote (19386)	7/20/1998 3:46:00 AM
From: Bruce L	Read Replies (1) \| Respond to of 45548

<Isn't it possible that the 25 and 27 1/2 call options were covered by the seller?> Yes, I'm sure many were covered before earnings and before expiration. But the point is that they can't make you sell and many holders of these call options ( and I'm one) refused to sell at the artificially low, rigged prices - which much of the time were below intrinsic value - and instead exercised and took possession of the shares. My understanding is that most of these options are sold by both market makers(who sell short) and mutual funds and institutions who sell them for extra income. These removed shares will have hit the accounts of the MMs and funds after the market close Friday. Assume for the sake of argument that COMS was already revving up its engines for the move to the upside (I know YOU at least, Joe, don't disagree with me on this point) and add to this the MMs etc who find themselves Monday AM short shares they never wanted to lose - or just plain short - and you may have a very volatile upside breakout. How volatile? Who knows? but I'm still predicting trades tomorrow above 31.