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


To: ed who wrote (13776)1/17/1998 9:40:00 AM
From: SK Ho  Read Replies (1) | Respond to of 97611
 
Re:>it is you guys who play option tradings prenvented stock
move<
I am wondering if this is the reason that CPQ is not moving.
Why didn't it happen to Dell? Dell has recovered a lot since Oct. It gained 11% last week but CPQ gained 3% only(even with split and earnings next week). Are the investors worried about the margin being squeezed by sub1000 PCs? Are they losing China market to Chinese PC makers? Does anyone know something but we don't know? Why doesn't it move?
Certainly I hope we will get good answer from next week's earnings.
Good luck to you all!
Long CPQ



To: ed who wrote (13776)1/17/1998 1:16:00 PM
From: Mike Gordon  Read Replies (2) | Respond to of 97611
 
Ed, I guess I one of those who stalled the growth on Compaq. Most of my trades are covered calls or short puts. Upon purchase, the funds are in the account. If the call is exercised, I kept the premium. If the put is exercised, I own the stock at a discount with an immediate opportunity to sell the covered call. This strategy is considerably more profitable that buying calls or puts for long term expiration dates. The 'big boys' might be on to something!!<ggg>

Mike Gordon



To: ed who wrote (13776)1/17/1998 5:20:00 PM
From: MIKenn  Respond to of 97611
 
How can the purchase of option influence the value of the underlying security, especially one with the capitalization and trading volume of Compaq.

Does this really happen? Is there documented proof?