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Technology Stocks : Compaq

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To: Captain Jack who wrote (79361)3/10/2000 7:03:00 PM
From: Andreas  Read Replies (2) of 97611
 
Here's what I did today.

Call me stupid if you choose. I sold a bunch of april calls with a strike price of 32.50. These calls expire on april 22 (saturday). Earnings are released the following wednesday. I'm hoping the pre-earnings run-up will push cpq right around 32.50. With the premium I got, cpq would have to be over 34 on earnings date for me to have made a bad call. We'll see, won't we? I'm quite willing to let this porker go at 32.50 plus call premium by april 22. If cpq is not 32.50 by expiration date then I keep the option premium for my trouble.
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