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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (69013)	10/18/1999 1:13:00 PM
From: Windseye	Read Replies (1) \| Respond to of 97611

Duke, I've been looking at buying the stock at 20 then simultaneously selling a JAN 20 CALL at 2 1/4 to 2 1/2. If CPQ moves to 18 or so I have some "protection" (until January). Any time it moves over 22 1/4 to 22 1/2 it may be called away, in which case my net profit is the original 2 1/4 to 2 1/2. If CPQ never goes above the 22 1/4 to 22 1/2 range then the CALL expires worthless and I get to find another CALL to sell, or bail if the price allows some profit. Alternatively I hold longer, looking for some eventual upward movement... no guarantees, just some immediate money and some intermediate protection.