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Technology Stocks : Compaq

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To: Andreas who wrote (23898)4/4/1998 12:32:00 PM
From: Mike Gordon  Read Replies (2) of 97611
 
<< Buying cpq at $26 and selling the May call for $1.00 with a strike price of $27.50 gives one a $2.50 return in about six weeks. I'll take the 6% in thirty days anytime.>>

Andreas: Thanks for supporting my position. You're correct when you say the ROR can exceed 40% if you're disciplined enough to manage your investment daily. However, like you, I got stuck with 2K shares of CPQ by selling puts. However, this was turned around by selling CCs. You need to understand the math and strategies if you are to be successful.

Mike
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