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

To: DJBEINO who wrote (23361)	8/3/1998 10:52:00 PM
From: DavidD	Respond to of 42771

Open interest in options is the number of contracts that have been "opened," (i.e., purchased) and held by investors. This is very similar to shares outstanding, except the company does not issue them. I never buy options that have no open interest because I am afraid of getting screwed by the market makers (paranoia?). I always sort options of a particular stock or index by open interest first, then by strike price to see which strike is most active... it is interesting to match these strikes with what you think support or resistance is. A great book for understanding options is "The Options Course" by Rudi Binnewies. It ain't easy to understand, but it sure is worth it.