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

To: Spartex who wrote (23139)	7/20/1998 12:13:00 PM
From: DJBEINO	Respond to of 42771

Novell chooses Ireland as its main European base irish-times.com

To: Spartex who wrote (23139)	7/20/1998 12:19:00 PM
From: Paul Fiondella	Read Replies (2) \| Respond to of 42771

We still need to hear from Ben The only way I can go with the autoexercise theory is if some people actually paid more that 9/16ths for the 12.5's. That's only 281,000 shares incidentally. The spike up last week and the spike down this AM would be a very weird options play. Perhaps Ben would like to research the issue of Novell's place in the S&P. I have always had a feeling that Novell's stock price had some relationship to those options but I don't know enough about it. As to the current price, well you know those MM's. Keep the price close to the nearest option strike price for as long as possible. ======================== With options expiration on August 21st and Novell reporting after the bell that day, watch out.

To: Spartex who wrote (23139)	7/20/1998 12:31:00 PM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 42771

Quad-K, The autoexercised calls that occurred were 30 $7.5 contracts, 2608 $10 contracts and 2811 $12.5 contracts. However, depending on the brokerage house, some of the $12.5's may have disappeared not autoexercised because they were not in the money deep enough to meet the brokerage house's autoexercise threshold ie if the accounts were with DLJ, they would go unexercised(<.75 itm), but ML and others would have autoexercised them. But the $10's and the $7.5's most certainly were autoexercised. Why does this situation occur, it's hard to say. PF's laziness factor.. perhaps. But if you hold a call on expiration day, you better be sure you know how you are going to handle it if it gets autoexercised and the broker is calling you for the cash to cover the purchase... Oh, BTW, some of the other tech stocks that had lots of autoexercised calls went down at the opening bell... eg DELL. Ben A.