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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: HF who wrote (6582)	1/27/1998 12:14:00 AM
From: R. Gordon	Respond to of 14162

Hank, Traditionally (in the short run) when one company buys another, the purchaser's stock goes down and the one that is acquired goes up. I think that CPQ is a great company and will do well in the long run, but I would have wanted to wait a few days or a few weeks for the dust to settle. I believe you will do great - but you may have to wait a month or three. I think that some people probably knew on Jan 20 that the deal was going through and started selling their holdings. For the most part I think that I have given up trying to figure out why stocks move up or down at any particular time - except that they tend to move between overbought and oversold positions and follow the trends of the market as if they were caught in their tides. Stocks often rise as if caught in a feeding frenzy and then the buyers run away like rats on a sinking ship till it's oversold again. If I had available money, I might well start buying ROST now and continue if it went even lower. I would also start buying protective calls. Richard