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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: ron delany who wrote (4460)	9/28/1998 12:50:00 PM
From: Linda Kaplan	Read Replies (1) \| Respond to of 6565

Well, 1/8 point went to the Specialist. Both puts were at 7 to 7-3/8 when I placed the order. So I didn't pay the full spread, just 1/8 of the spread. So $150 went to the Specialist on this deal. The $58 went to the broker for the commission on the buy and the sell. I placed the order at "no cost" but I couldn't get it, so I raised my order to 1/4 and they got it for me at 1/8. So I don't think it's too bad. The scam is probably that the price of the Oct and Jan puts are the same price, but that's the Specialist, and the market, I would guess. There's a low premium on both the puts, actually, given that the price of the stock is 8 and the strike is 15, there's almost no premium on the puts. That tells me that the marketplace doesn't think that the stock will go much lower, right? Makes sense to me, since I think everything has been wrung out of VLSI already. No one is going to sell who hasn't sold, any margin calls have been met. It's just a matter of waiting for the recovery in VLSI now. :-) Linda