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Technology Stocks : Compaq

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To: Night Writer who wrote (72950)12/1/1999 1:22:00 PM
From: MeDroogies   of 97611
 
You are absolutely correct in your descriptions.
However, alot of people don't believe these descriptions to be the case. They feel that if a stock is going to hover (say, CPQ at 25), then selling a covered call is NOT a short play since they are making money on the stock even if it (possibly) goes to 25 1/4. While the call can be executed, it isn't likely to be if it was bought far enough in advance and the buyer lost the premium.

It's a very strange world, options-wise...but technically you're correct.
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