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

To: Gottfried who wrote (97566)	5/3/2002 9:33:28 AM
From: Jerome	Read Replies (1) \| Respond to of 97611

Gottfried...thanks for the article....it just goes to show that the insiders are no better stock market predictors than the outsiders. I believe that Adaptec got creamed by that kind of stock play. That being said...now that we somewhere near the bottom for the tech stocks it would make sense to do that kind of play. Jerome

To: Gottfried who wrote (97566)	5/3/2002 11:06:40 AM
From: Windseye	Respond to of 97611

Re Dell selling PUTs and buying CALLs... I believe this is called a "synthetic long" pair of option transactions. Interesting how in mid April I flagged a similar pair of transactions in CPQ for 50,000 shares... selling the JAN 2004 10 PUTs at $2.00, and buying the 15 CALLs at $.95. Works well in a rising market, but it is an enforced buy if the stock falls below strike minus premium. I wonder why the smart guys at DELL didn't buy their way out earlier. DJ