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Technology Stocks : Compaq
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To: Night Writer who wrote (38790)12/5/1998 5:25:00 PM
From: isdsms  Read Replies (1) of 97611
 
NW
Options are such a tricky thing. The only position I ever had that I was always able to generate money with was Iomega. I had a ton of the stock and just lucked out all the time. A few times I got called only to buy it back cheaper. Over the past couple years I can't say that I've done as well. Getting caught in a run up of a position and leaving big bucks on the table draws question into the strategy. I now try to refrain from writing calls on positions I plan on keeping. On short term positions, however, I often write an out of the money, to lower my cost basis. If it gets called that month...so what. Last week, I bought a 1000 shares of cpq for 34.25. Yesterday, I wrote Dec 40's for .875. My shares will probably get called netting me a 20% gain in 3 weeks. I can handle that and won't cry if cpq is at 45 at the time. Its the cost of entertainment. Get my play money back again and look for more action. Meanwhile, my long position is safe and sound.

Regards,
Ira
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