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Technology Stocks : Manugistics, Inc. (MANU) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Smith who wrote (1184)	1/25/1999 3:03:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 1670

the feb calls will expire in less than 30 days; more like 3 weeks. for someone to be buying large call positons now, must mean they are betting the merger will take place within that time frame. i've bought lots of calls but i'm more comfortable holidng the stock here. i expect to make money on this position but it may take a couple quarters.

To: Tom Smith who wrote (1184)	1/25/1999 3:16:00 PM
From: Mark Peterson CPA	Respond to of 1670

Tom, thank you for your observations. If you believe that MANU could go to 8 or to 6, then you should just wait until it gets there and buy the stock at the lower levels. I'm a trader and my personal risk preferences tell me that selling the Feb 10 calls for 1 and buying the stock for 9 3/4 is a great bet. Not every strategy is appropriate for every investor and you are right that there is risk in any strategy. But any marketmaker would absolutely love to be on the sale side of the Feb 10 calls. The MM would sell you the calls you wish to buy at the price you are willing to pay, then pick up the phone and short 1000 shares of MANU for every 10 lot of options the MM sells to you. I appreciate your remarks. The wonderful thing about the market is that it is a two-sided market in a zero sum game. You have properly assessed the risks of the transaction from your perspective. May I ask you, how would you trade this stock to maximize your investment return? By the way, I sold 80 of the Jan 15 calls against 8,000 shares of MANU long. The stock got called away a week ago Friday at 15 3/8. MANU opened the following Monday at 10 7/16. I took a risk, but that's one bet I won. I agree that there is risk in any investment. As an SI threader, let's share the information and our individual experiences so that one way or another, we end up on the right side of a zero sum game. Thank you, again, Tom for your informed observation.