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

To: Wayne Lian who wrote (8382)	11/1/1997 9:05:00 PM
From: Zam	Read Replies (2) \| Respond to of 97611

Tax wise, you would show a loss, but why loose? if you want to keep CPQ for the long run, and you are afraid that it will go down you can do two things: 1) sell covered calls (and if it goes down, you can buy them back, and then sell more...) 2) buy puts, which will protect you as insurance if CPQ goes down or you can do both.... sell covered calls, and buy puts with the money you make if it goes down (free insurance, if and only if it really goes down) Personally, I think that if you sell short at 60, you could end up covering at 100 by January. Never sell short, alway buy puts, your risk is limited to the amount invested. Be careful