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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: MGV who wrote (3881)	8/22/1998 1:22:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Darkgreen: I think you've figured out a good way to play this one. The problem with options is that they have a set expiration date and usually expire worthless. In this case, VLNC has fixed deadlines to either get their act together, or if not, there is a pretty good chance the game is over. Normally there are no such hints about the timing of when events (good or bad) will occur. Thus, call options here may be a better bet than normal. By December, the fate of this company one way or the other should be pretty much sealed.

To: MGV who wrote (3881)	8/22/1998 1:30:00 PM
From: DKR	Read Replies (2) \| Respond to of 27311

Finally some objectivity. An interesting point is raised, it has crossed my mind and probably every other Valence shareholder, to sell some of my position and buy options. You are correct that in this situation the risk reward ratio favors the Dec 5's. This may have contributed to recent selling of the common to buy options ( as evidenced by the increase in option activity) by margin sellers trying to control an equal number of shares or nervous longs reducing risk. Does anyone know the open interest on Valence options?