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Technology Stocks : Compaq

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To: Wayners who wrote (28074)6/25/1998 12:28:00 PM
From: Dr. Id  Read Replies (2) of 97611
 
The big risk of this strategy is that when CPQ begins to move, it will move fast and you can very well lose your upside. I don't like writing cc's on a stock that I'm holding for long-term potential. I think its a better strategy on a stock that you originally intend to play in that way, and don't mind having called away. I envision CPQ as my retirement...would hate to have my retirement called away for a short term gain! And even if one thinks it will languish at these levels for a few months, no one really knows. If the market usually responded logically, this would be a much easier way to make money. Unfortunately, it doesn't, and CPQ could report flat earnings and the stock could start to go up (Hell, AMZN has NO earnings and its up over 60 points this month!)

JB
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