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Technology Stocks : Compaq

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To: Nick who wrote (15308)1/27/1998 11:11:00 PM
From: TideGlider  Read Replies (1) of 97611
 
Nick: Maybe he bought puts on CPQ. Many people did when the merger was announced. A good call if he did. Most companies would have dropped considerably more points on such a huge purchase. CPQ acted remarkably well anf I expect it will do very much better. At least if the market holds. It is very rare to see such a purchase and the larger of the two drop so little and nearly gain it back the same day. Puts are usually good for a several points under such conditions. This one was just different.

I would have bought puts but I waited first and used the cash for calls.

Good luck to all.

TG
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