Gil Morgan shot a hole in one during an eight-under-par 63 round that gave him a share of the third-round lead yesterday in the $300,000 Glen Campbell-Los Angeles Open Golf Tournament.

Morgan's ace, the second of his career, came with a five-iron shot on the 173-yard seventh hole at the Rancho Park Municipal course. It was the first of four holes that he played five under par.

In other notable events:

George Archer scored consecutive eagles and shot a 61 that brought him from the cut figure to within a stroke of the lead.

Arnold Palmer, who has not won in 10 years, shot a 68 and was a stroke back with 18 holes to play.

Gene Littler, 52, one-putted 10 times with a new, strange putter that has the brand name "Basakwerd" and looks the part. He shot 66 to tie for the lead at 202 with Morgan, Mark McCumber and Lanny Wadkins. Wadkins had 67 and McCumber 65 (31 on the back nine).

Tied with Archer and Palmer at 203, 10 under par and one off the pace, were Fuzzy Zoeller and second-round leader Gibby Gilbert. Zoeller had a 69, Gilbert 71.

Tom Watson, the U.S. and British Open titleholder and the defending champion here, missed the green and bogeyed the final hole and dropped back to 204. He had a third-round 69.