How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (7916)	7/22/1998 4:55:00 AM
From: Tony B	Read Replies (3) of 14162

Hi Herm, I noticed the following: Compaq Computer (CPQ) closed @ 32 9/16 Tuesday. For argument sake lets call this 32 1/2. With the stock price resting right on the 32 1/2 strike why is the August 32 1/2 CALL (CPQTZ) trading at 1 11/16 x 1 15/16 while the August 32 1/2 PUT (CPQTZ) only trades at 1 5/16 x 1 3/8? Why the large disparity in price with the stock right on the 32.5 strike? I am not new to options and have noticed that in a case like this the call will sell for maybe 1/8 or so more than the put but isn't this spread excessive? Could it be telling us something? Any insight you or anyone else can give would be appreciated. Good luck TB

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