To All, Prior to this news, Compaq stock had been the hero of this put cycle for me. This is partly due to brilliant timing on my part and partly due to a lucky mistake. I bought my original puts near the high on the stock and noted it here. That was brilliant. It dropped to $40 and I rolled 45s and 40s to 35s. Then it bounced and I bought more 40s. When it fell to 40 again a few days later, I planned to roll down to 35s. However, instead of selling my 40s, I made one of those occasional errors you will make using an online broker. I bought more 40s instead of selling the ones I owned and then bought the 35s. So, when the fall to the mid 30s took place, instead of having a dandy position in 35s, I also had 2/3s in 40s.
It is better to be lucky than smart. <g>
Anyway, if Compaq falls on this news, it has a shot at entering my all-time Top Ten list of puts. I haven't had a gonzo winner yet this cycle and this could be the first one. Dell could be the next. Merrill was real nice, real quick, but nowhere near top ten caliber. I think others have potential to be grand slams, like CDWC and Micron, but they haven't come close yet.
MB |
