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

To: Night Writer who wrote (12598)	1/3/1998 2:00:00 AM
From: Kenneth R Miller	Read Replies (4) \| Respond to of 97611

I'm using DLJ Direct and have 2 year history with them.. I haven't made any money during that time... some ups and some downs... I think I've traded about 200K during that time span and about broke even. I've made a lot of mistakes <ggg>, but they have made lots of commissions. I filled out the forms they send you, and they replied that I didn't show enough income.. (My income is just Social Security and State Retirement) about 20K annual. So I've just been buying stock. Thanks for the suggestions.. I've thought about opening another brokerage account and not telling them... so I can use one account for trading and the other account to hold stock long like CPQ.. Any more suggestions welcomed. Regards, Ken Miller

To: Night Writer who wrote (12598)	1/3/1998 8:45:00 PM
From: Mike Gordon	Read Replies (2) \| Respond to of 97611

Your advise to Ken Miller concerning the sale of April Calls on the CPQ 60s is right on. If an investor has specific goals (Rate of Return), the sale of calls or the sale of puts prior to the purchase of the equity will yield an incredable return. If Ken does not own CPQ, he might consider the sale of the January 98 60 puts at 4.75. If CPQ is above 60 by Jan 17, he picked up $475 per contract or, if CPQ closes under 60, he owns the stock at $55.25, (All less commissions and permissions by the broker). Not a bad return either way. This only works on stocks which show considerable promise. Would like to hear other points of view. Mike

To: Night Writer who wrote (12598)	1/4/1998 11:04:00 AM
From: Kenneth R Miller	Read Replies (2) \| Respond to of 97611

Night Writer: Thanks for the informative post suggesting a strategy of "Buy 100 CPQ at 60 and Sell 1@July Call at 70 Strike price for $6" Last Bid Ask Chg High Low Vol OI Sym C JUL98 70.0 6 6 6 1/4 +1 6 5 1/4 52 1321 CPQGN I cut and paste the above from DREYFUS BROKERAGE SERVICES web site just for clarification. Is the correct instruction to your broker, "Sell a Call"? I have heard of selling a Put. I'm somewhat confused as a novice about the correct term to use for the intended action. Would you care to make it more clear or am I asking for too much redundance here on a message board. Should I email you my telephone number and you could call collect to explain in over the telephone? Thanks for your patience.