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

To: David F. Robinson who wrote (15779)	1/31/1998 6:43:00 PM
From: hpeace	Respond to of 97611

daivd, just keep the stk and forget about the price fluctuations. do you think I was able to naviagate owning cpq for 16 yrs. the stk has crashed 31 times since I owned it before it was public. I just keep pugging along. of course when your cost basis is pennies, you can't even sell it since the IRS would eat you alive. I think they even took away the short sale....i do buy cheap puts when I can. you buy cheap puts when the stk is rallying and the street is talking up up and away

To: David F. Robinson who wrote (15779)	1/31/1998 9:36:00 PM
From: Mike Gordon	Read Replies (1) \| Respond to of 97611

Anyone who feels that CPQ is dead money for a while should be selling covered calls, especially if their on margin. Friday, the sale of covered calls for 1,000 shares: .....Feb30...$1,062.50 or March 30...$2,125 Sale of these calls do two positive things; a. Protect your downside risk to the extent of the amount received, b. Ensure reasonable rate of return for the option period. Sale of these calls do one negative thing. a. Limit your gains at $30 during the option period. BTW, I sold 20 CC's after the announcement at $32.5. Wish now I would have sold the $30's. Unless things are considerably different, I'll sell the Mar $30s in three weeks. Mike Gordon