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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?


To: rudedog who wrote (3954)12/16/2001 10:09:06 AM
From: Jerome  Respond to of 4722
 
Call options on the deal....

My take would be this....Short HWP go long CPQ.

Sell Hwp puts at the 20 or lower strike April and beyond.
Rational... If this deal falls apart HWP will be recognized as a one play company (printers) and if the the economy stays soft...where is that going to lead??? That plus a total lack of vision and the embracing of the HWP way (backwards) will not be good for the stock.

Go Long CPQ options at the 10 or 7.50 strike. These will give you the most bang for the buck...merger or no merger. Use any month from APRIL onward.

Note I follow my own advice and I'm long a lot of CPQ options.

Jerome