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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Spaw who wrote (25296)	8/1/1998 2:48:00 AM
From: Rainmaker	Read Replies (2) \| Respond to of 36349

I prefer not to pay such a high premium for the time. At 50 contracts and a premium of 3+ change (around $15k), I would rather margin that $15k amount 100% ($750 interest charge - 10% for 6 months) and pick up 2000 shares. Anytime you are paying more than $1.00 per share as an options premium, the value (cost/benefit) is lowered. In this case, at $3+, the premium represents 25% of the stock price. The value investor would keep that ratio around 10%. I'll stick with my Jan. 20.