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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Just_Observing who wrote (26545)	4/7/1999 3:11:00 PM
From: Paul Fiondella	Read Replies (1) \| Respond to of 42771

NOVL options By all means the best bet with NOVL is to buy in the money options when they are cheap. Certainly the MAy 20's at 3 3/8ths --- a 3/8th point premium over the current price are better than the 25's at 1 1/8th of pure premium two dollars out of the money. The largest May open interest is at 22.5 with 21330 contracts before today. Buying the 25's is a bet on the earnings upside. I own a considerable number of in the money options on NOVL at this point and my buy at 25 was conditioned by that. If I were a virgin options buyer I would look at the lowest premium in the money option.