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

To: Lynn who wrote (73342)	12/6/1999 7:07:00 PM
From: Andreas	Respond to of 97611

To Thread; Let me know what you think. I am currently long cpq a few thousand shares and am seriously thinking of selling the January 30 call. The premium received would be slightly greater than $1.00. The only way that this can turn out to be a bad decision is if one of two things happens. (A) CPQ stock shoots up above $31 by January 21, 2000 (option expiry date) or (B) cpq stock tanks and I'm stuck either holding on to cpq or buying back the calls before I can sell the stock. Why $31 some of you ask? Because I will receive the $30 strike price plus another dollar for the option premium. If stock goes above $31 by expiry date then clearly I would have been better off just holding on to the stock. So here's the 64,000 dollar question. What are the chances of cpq being substantially over $31 by January 21, 2000 and in the alternative what are the chances of cpq tanking at any time between now and option expiry date? Right now I don't see any compelling reason to simply forego the extra buck on the option premium. Any thoughts most venerable, wise, generous and almighty fellow cpq shareholders? P.S. cpq shorts need not reply.