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Technology Stocks : Compaq

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To: Night Writer who wrote (26310)5/18/1998 4:51:00 PM
From: MJR  Read Replies (1) of 97611
 
Personally I believe that CPQ will stage a bit of a mid-summer rally...perhaps as strong as to the mid/upper 30s.. maybe a touch at 40. I too am a bit surprised at the Jul 40 calls.. seems a bit high of a strike. But, once the DEC deal solidifies, this may be enough to give CPQ a kick. For now, I'm playing short-term conservative with strangles/straddles.. but will soon be looking at longer term calls if things start solidly turning in the next few weeks. Lots of market factors in the mix however, making it difficult to read at this time.

For now, I'm looking for "singles" here and there just collecting a few bucks no matter which way we go.. and putting the strong portfolio growth on hold a bit. By the way, pretty much all I trade is CPQ and DEC in my trading portfolio. These are both fun companies to watch and I have a strong professional interest in them as I am an IS manager of a large DEC shop with some Compaq thrown in. In addition, I trade only options at this time.. this 2-company focused approach has worked pretty good so far...

Regards,
Mike
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