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

To: hpeace who wrote (9717)	11/26/1997 9:54:00 PM
From: Gerald Drews	Read Replies (4) \| Respond to of 97611

Steve - You don't know what you're talking about !!!!!! You should stick to bragging about your career at cpq and stop giving info about taxes on options. When stock options are exercised the basis price for taxes is the strike price of the option and taxes are due only on the capital gain when the stock is sold. There is no tax due on the option if it is exercised. It's obvious you don't have much experiance with options so you shouldn't be giving advice. I have been there done it and you are WRONG !!!

To: hpeace who wrote (9717)	11/26/1997 11:18:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Steve, My company use to have stock options before we were bought. Whenever the option exercise window was open for insiders to sell the stock, the stock was never at the best price. Also, it did not buy the stock because of the taxes. I would exercise for cash and accumulate stock in 401k. Cash would be used to purchase stuff. Also could stock purchase with payroll deduction which I never did. Some times would buy on open market, but would have to get legal OK to sell, so it was a real bother to trade in your company stock. Got caught once with options expiring and market price lower then option price. Should have exercised for a $5 gain earlier, but thought price would go up. Lost about $25,000 BT. Agree that unless you see massive insider selling it tells you nothing on a large company. NW