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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Rumball who wrote (20934)	12/30/1998 7:22:00 PM
From: manny t	Read Replies (1) \| Respond to of 120523

Wayne, The warrant is exactly like a stock option,which give you the right to buy the OSFT stock at 6 1/2.If you sell the warrant short,meaning that you don't own the underlying stock, you face unlimited exposure when the stock start moving above 7 1/2(the 1 dollar you received for the warrant,plus the right of the warrant holder to exercise the warrant at OSFT 6 1/2 or above).You are paying 1 dollar for the time value, which gives you the right to exercise the stock any time until the year 2001. I hope this explains the huge risk of selling the warrants short. Manny T.