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Technology Stocks : Compaq

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To: Andreas who wrote (17739)2/21/1998 11:56:00 AM
From: Sundar Rajan  Read Replies (1) of 97611
 
couldn't help listening on your covered call discussion. Although not a big player I tend to write covered calls when stocks rally, for example, when CPQ was 37/38 I sold Apr 37.5's for 2 1/4 and bought them back later at a lower price. I consider these to be trades in themselves and if you are making a profit in addition to holding an appreciating equity it is great.

problem is when a stock rallies big time i could miss out. last year when i wrote hwp july 55 calls for a measly 2$ and the stock went to 70 i missed on a 15 point run.

nowadays i tend to write longer term calls that gives me a chance to buy back on a down day.
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