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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (16629)	2/22/1999 12:56:00 AM
From: ed	Read Replies (1) \| Respond to of 74651

T2k, Be prepared for the surprise , the settlement between the DOJ and Microsoft , which is probably now under negotiation. So, when the case resume again, there may not be a judge at all. You know if Microsoft loses in this round , there will be appeals after appeals ( you know how long the IBM case last) . Eventually, the what so called Anti Trust case will be no big deal to the market . And 10 years later when this case is settled, Microsoft is in another big market, and who cares the OS at all ?

To: t2 who wrote (16629)	2/22/1999 11:07:00 AM
From: Michael Ohlendorf	Read Replies (4) \| Respond to of 74651

Tech2000 or somebody else here could you tell me what the official exchange margin requirements are to sell uncovered tech stock calls and puts on companies such as MSFT, DELL, INTC, AOL, YHOO, CSCO , LU, IBM, etc.. ? Could you also point me to a Web site where I can find this information. I am planning to write some uncovered calls/puts for the first time and would need this information urgently. Also could you tell me what happens if after the call/put is written the price moves against you and the buyer of the calls/puts I wrote decides to excercise the options. Do I have to buy the stock then to cover or do I simply have to pay in cash the difference of money I am in the red with my position (lets say I wrote for $2 and it has moved against me to $4 - so would I have to pay the buyer the $2 difference or would I be forced to buy the stock - I assume I do not have to buy the stock since this would require a lot of capital one would always have to have available considering that a few contracts already equals a lot of stocks). Many thanks for any advice from more experienced option traders.

To: t2 who wrote (16629)	2/22/1999 1:56:00 PM
From: Ben Beale	Read Replies (2) \| Respond to of 74651

T2K, From Briefing.com: Microsoft having a tough time getting on track these days as investors remain nervous over outcome of court case... Fears running high that MSFT is losing and could get split up... Briefing.com maintains that win/lose this is an unlikely outcome... Pullback affording long-term investors decent opportunity to (re)enter one of the world's premier companies at a "reasonable" price... Stock 16% off its high... Additional downside risk to 140-135 range.

To: t2 who wrote (16629)	2/22/1999 4:00:00 PM
From: Teflon	Read Replies (2) \| Respond to of 74651

t2k and the MSFT faithful: Please take heart in today's stock action, we have seen this before. Almost every year, MSFT's stock will get taken down early in the year for a variety of "reasons". But the stock's reaction is always the same. First, it gives up ground easily, almost too easily, and retreats 10-15% from its highs. In periods when there seems to be overwhelming negative sentiment regarding MSFT for whatever reason (as we currently have with the trial) the stock may be taken down an additional 5%. But as I said, it always reacts the same way. When the stock nears its bottom, it tends to give up ground in the morning, then fights back in the afternoon -- as it has been doing for the past three sessions. Sometimes it even squeezes out a gain (see last session). Today we are seeing more of the same, although I am not confident it will end the day in the black -- if we do, this is very bullish. I remember this feeling I now have in my stomach, the "Oh my God, it can't continue to go down like this" feeling! It usually coincides with the bottom. Regardless, the schedule that Jackson has just put in place for the remainder of this part of the trial (and recess) heading into the summer will provide support for the stock. Shorters will get nervous about the lack of negative PR coming from the courtroom during this long reprieve, and when considered with all the positives in the short term, will start to cover. There has also been a lot of Call Option activity on this stock, and I believe the work is complete in getting the prices desired. I fully expect the stock to start its rebound in the near term. If not for the behavior that I see now in the stock (behavior which has historically denoted a "bottom"), I think the trial activity may soon start to work in our (MSFT Longs) favor. Thanks, Teflon