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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (13487)	9/4/1998 8:56:00 PM
From: scope	Read Replies (4) \| Respond to of 18691

WHAT IS WRONG WITH THIS BOARD. ALL YOU TALK ABOUT IS TECHS AND YK2000. LOOK AT THE BANKS AND FINANCING. THAT IS WHERE ALL THE GOOD SHORT PROFITS ARE AT.BOY!!!$30-50 OUT OF THE MONEY PUTS JUST CAME TO LIFE. AND STILL HAVE 3 MORE MONTHS TO GO.GO BABY,GO!!!!!!!

To: Kip518 who wrote (13487)	9/8/1998 12:36:00 AM
From: mchip	Respond to of 18691

Lame... CATP is was hit... the sad thing is how this pulled down my SAPE stock.

To: Kip518 who wrote (13487)	9/14/1998 12:30:00 AM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18691

Kip, you can assume that the CATP options will be repriced at the bottom. Almost all companies do this (CTXS at $10 last year is a glaring example). You are right to compare employee option repricing to floorless convertibles, the employee selling of the bottom priced options pushes the price further down and places a ceiing on future gains. Note that a repricing option is a wonderful hedge to short against, I will bet that employees do that often.