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

To: Night Writer who wrote (72853)	11/30/1999 12:50:00 PM
From: spy hard	Read Replies (2) \| Respond to of 97611

We are not doing too good today. CPQ needs to start talking to analysts.

To: Night Writer who wrote (72853)	11/30/1999 4:00:00 PM
From: James F. Hopkins	Respond to of 97611

I sold covered calls, and there is no sweat as long as I don't get caught in a GAP UP that doesn't fill. I get the time premo until it does make 35, at that point there is nothing to stop me from buying more stock if I think she is going to continue up so I don't worry about the loss of price appreciation, they can call it but I can buy more so that's a wash. Every thing is a trade off of sorts , I get some downside protection by selling the calls, the money goes into my MM and draws interest. ON the chance If I go the route to buy the calls back, I roll them up, ( selling more at a higher strike ) now that may or may not cost me money depending on how long before that happens as the time premo has been working in my favor, lets don't forget what I first got for the 35s + the money I get for the next strike up , is very subject to add up to more than it cost me to buy back the 35s so I still net some profit. -------------------- The down side is if she GAPS up past my strike, or Gets bought out. It could happen but I don't really see it, and I'm willing to take the risk of not gaining as much to enjoy the feeling of comfort I get from having a sort of hedge. --------------------- Jim

To: Night Writer who wrote (72853)	12/1/1999 12:38:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

NW - You're right on selling calls - although I would not really classify it as a short play. The seller expects that the stock price will stay below the strike price. I have not sold calls that are very far out - I usually look for a good short term premium on an issue where investors have a lot of confidence but I don't - DELL being the premier example. The buy interest drives the premium up. I assume these are covered calls - and that is the reason that the play is not really a short. Since the seller holds the underlying, he expects that the base value will not go down a lot... the loss on the underlying will almost always be greater than the call premium. So this is a play where you have confidence in the stability of the underlying, but think it will stay in a range under the strike price.