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Technology Stocks : Compaq
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To: Mike Gordon who wrote (18691)3/1/1998 11:51:00 PM
From: Roger Louis   of 97611
 
< Are you concerned about this scenario or worse that CPQ drops even lower than $29.00?>

If negative news came out an CPQ and the stock started a down fall, Mike could close his position anytime before the expiration date by buying back his puts. Of course he could be assigned the stock, having CPQ Put to him anytime up to the expiration date. When writing a put, it's best to write on stock you would like to own at a discount. I think CPQ fits this prerequisite.

Roger
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