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Technology Stocks : Compaq

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To: Mike Gordon who wrote (17845)2/22/1998 9:54:00 AM
From: Andreas  Read Replies (1) of 97611
 
If you write the March 35 or 32.5 puts are you not concerned that the stock mighty shoot up to 40 in March? Then obviously your stuck buying cpq at 40. Also, what commission rate are you going to pay when exercised? Is it the full blown rate charged by your particular broker? Or is it an internet rate? For example, I trade on the internet through Scwab. They charge me $29.50 per 1,000 share trade (regular commission might be $150.00 for a 1,000 share trade). If the put is exercised and I am forced to buy cpq at 40 will I be charged a $29.50 commission or the full blown $150.00 commission?
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