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Technology Stocks : Compaq

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To: zalesky who wrote (17406)2/14/1998 12:52:00 AM
From: Analog Kid  Read Replies (3) of 97611
 
Zalesky- This post is not necessarily directed at you but you are the second person in the last few days to speculate that CPQ would hover at 35 because of the call option volume.......

Two weeks ago with CPQ at the 30 range, the Feb. 30 calls traded very heavily and one could have made the argument that the stock would stay there until expiry to burn all the call buyers. Didn't happen and those guys that bought calls are going to make money.

The only reason the open interest is so high in the 35's is the fact that the stock has been trading at near 35 for some time now. It's a normal pattern.

You may be right about CPQ being 35 next Friday but it will be for different reasons other than the open interest on Feb. 35 calls.
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