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

To: Mike Gordon who wrote (14627)	1/22/1998 6:46:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 97611

Compaq reports rapid European growth. Mike and thread: going forward I hope the european growth if sustained will help cpq to make up the slow down in Asia. yahoo.com

To: Mike Gordon who wrote (14627)	1/22/1998 9:16:00 PM
From: Analog Kid	Read Replies (3) \| Respond to of 97611

IMO when it comes to stock splits, options get all out of wack. For example you could have bought a Feb. 60 call for about $3 last week with the stock at 60. Suppose you picked up 100 contracts. After the split you have 200 contracts at a $30 strike that are worth $1 1/2 after the split and the stock becomes $30. Seems cheap huh? It is and all of a sudden 15,000 contacts trade in one day! It gets even worse when you look at the Feb. 70's. Heck you could have picked up one of those for .50 before the split. Well now you have a Feb. 35 that only cost you .25 and you're only $5 out of the money. So who is getting hosed in this scenerio? I think it will be the call writers because sooner or later unless the stock tanks, the options will have to come in line with reality and go up in price. What do you think? Am I missing something here?