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

To: joe who wrote (20363)	8/10/1998 7:23:00 PM
From: The Insider	Read Replies (2) \| Respond to of 45548

joe: the large volume of sept 25 calls may have been an employee options play by someone who wishes to exercise a few under 25. Maybe even sell a few shares to raise cash.

To: joe who wrote (20363)	8/10/1998 7:25:00 PM
From: Eric L.	Read Replies (1) \| Respond to of 45548

Joe, You thoughts are sound! Pretty scary, huh? Options by there very nature limit both your up and downsides. You best case senerio is that coms is trading at 24 and change when they expire and quickly bump back up. That means you keep both the stock and the $4K. If you held the stock you'd need coms to hit $32/share to equal the return and any above $32 is gravy. The question you need to ask is, "Will COM$ be trading at or above $32 by the end of Sept?" Another interesting point is that if Sept 25's are truly going for $4 at the close of today (I'm not sure, haven't checked) that is not much of a premium-15/16 as of close today. What that would tell me is that people are not willing to pay much of a premium for this option even though its "in the money". That wouldn't be as attractive for me to lose control over 1000 shares. On the other hand.... For example, C$CO Aug 100 calls are trading at 2 1/4 -2 3/8 at todays close of 99 3/16. That means they are trading at almost a $3 premium with less than 2 weeks left til they expire! That wouldn't be a bad premium. Anyways, just my thoughts. Good luck! 3CB!

To: joe who wrote (20363)	8/10/1998 7:59:00 PM
From: mr.mark	Read Replies (1) \| Respond to of 45548

there was a hell of a fight today for 28... i thought COMS would lose it a couple times, but it held real well. i'd shorted the stock at 27 15/16, and finally had to cover over 28. it was an impressive showing, imhfo. i don't care about the 3/16ths. good to see the strength in the stock.

To: joe who wrote (20363)	8/10/1998 9:53:00 PM
From: Deepak NAik	Read Replies (2) \| Respond to of 45548

You are only getting $1 in return if you buy stock @ 28 and sell 25 calls for $4. You only get $25 when the stock is called away from you. Plus the $4 makes it $ 29.