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Technology Stocks : Compaq

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To: Dr. David Gleitman who wrote (38370)12/3/1998 12:22:00 PM
From: Sundar Rajan  Read Replies (2) of 97611
 
I have been in similar situations selling calls and finding the stock run up against me. Fortunately CPQ is a slow mover so you should be able to roll your calls to the next month - say sell a jan 37 1/2 or jan 40 and then buy back the dec 37 1/2. If you are lucky you could try to time the sale when cpq is high and buy back the dec's when it goes down - may be on the same day.

I have never known of calls being exercised before the expiry date but one of my friends who sold puts on disney had dis put to him a week before expiry.
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