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To: sam who wrote (2813)	12/25/1998 12:30:00 PM
From: robbie	Read Replies (1) \| Respond to of 4903

sam, your analysis is correct. M31 comparing 120 calls to 40 puts, etc. is useless. He sounds like another short about to get crushed. Robbie

To: sam who wrote (2813)	12/25/1998 3:02:00 PM
From: M31	Read Replies (1) \| Respond to of 4903

Sam, RE: Why would anybody buy options so far out of the money? And so many of them? Let's use, just to simplify and put this in perspective, the bid and ask prices of 1/2 and 1 respectively from the link I posted in my last message. This means that someone or some group currently holds 360 Jan 120 call contracts that they could sell now, if they put them all together, at the current bid for the huge sum of $18,000! And it means that you, too, if you think that ONSL is going to skyrocket in the next few weeks, could plop down $36,000 to buy another 360 contracts with an immediate resale value of $18,000. And it means that if ONSL doubles to 121 on option expiration day and you hold your calls until them, you'll make your money back minus commissions. Get it? This is NOT big money we're talking about. Looks to me like a bunch of rank amateurs bought these calls! You're saying this is smart money?!? Have you modeled the profit/loss potential of the Jan 120 calls taking into account potential changes in volatility? I didn't think so. M31