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To: Analog Kid who wrote (14661)	1/22/1998 10:54:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Digital, You are on target, if those prices are real. I looked last night and CBOE didn't list the split for some reason. NW

To: Analog Kid who wrote (14661)	1/23/1998 1:13:00 AM
From: MIKenn	Respond to of 97611

Digital Man: On the subject of Feb. 60 calls, I think the price would have been much higher than 3. It would have been closer to 4-1/2. Then the division yields an equitably priced 30 call. As I recall, the stock price was below 59 and surged in the last 3 minutes of trading. Perhaps the options did not trade in this time and therefore the last trade did not represent underlying security valuation at the closing. KQB

To: Analog Kid who wrote (14661)	1/23/1998 3:41:00 AM
From: Mike Gordon	Read Replies (1) \| Respond to of 97611

Digital Man You're right, the net impact on calls are difficult to predict during a stock split. I've gone through two, which changed my perspective and strategy. CPQ post split was up $4 after earnings announcement. Feb call buyers, pre announcement, did well if they sold mid day or after. However, this movement had more to do with earnings and projected growth than it did on the functional value of the option, IMO. Hindsight is cheap. I sold the Feb 32.5 early in the day at 7/8. My goal is to secure a return. Being greedy is sometimes costly. I was too worried about the run-up from post price of $57. The actual return is satisfactory. Hope to do the same next month. My concern is that CPQ maintain $30. Regarding the Feb $35 calls, net .25 isn't bad when $5 out of the money. Depends on your point of view on who is getting hosed. One month out and $5 beyond strike price is considered quick money by some. CPQ primary trend is up which makes the Feb 35's attractive. The 15,000 contract you mention are probably the result of funds repositioning, (Don't ask me how) Mike Gordon