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Technology Stocks : Compaq

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To: hpeace who wrote (12824)1/6/1998 12:01:00 PM
From: Rob Hinton  Read Replies (1) of 97611
 
Steve,

Ok, so we are trending up until earnings and no stock. Is this time
for the SSS (Steve setp-in strangle)? I'm new at this so bear with
me:

1. Hold calls now while stock goes up into earnings.

2. As we get to earnings then buy puts because they are
cheap at that point and the sentiment is bullish?

3. Knowing that there is a small possibility of a run away
get some cheap upstrike calls as well? This protects our
upside potential.

As we approach earnings are the puts picked up at-the-money (seems
expensive) or one strike price below the current level?

Also, how far out do you want to go? Next month? Three months?

Thanks,

Rob
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