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

To: Roads End who wrote (17667)	2/19/1998 12:17:00 PM
From: zalesky	Read Replies (2) \| Respond to of 97611

TO RIECHERS: The options RACKET works like this: If you bought a CPQ Feb 35 call recently you will begin to make a good chunk of change on your option when the stock price goes several points higher than 35 bucks. Since the market makers know this they sell tons of stock at or slightly above 35 to keep the price artificially low to limit their losses/or make significant profits. Also at this time thousands of folks don't think CPQ will go much above 35 (AS WE'RE Experiencing NOW) and decide to cash in their chips. The market makers turn right around and DUMP millions of shares associated with these call contracts further depressing CPQ's stock price. Anyway, like I always say YA LIVE, YA LEARN AND HOPEFULLY MAKE MORE $$$!!!!

To: Roads End who wrote (17667)	2/20/1998 1:52:00 AM
From: ed	Read Replies (1) \| Respond to of 97611

Some folks make a living by writing calls. Say you have one million dollar, and bought 10000 shares of CPQ with $350k in Jan, and sell 100 calls immediately on Feb $35 for $2 premium, then your income for Feb is $20000 (if the stock price held below $35 at the expiration. your return in one month is 5.7% in one month, and you can write call everymonth, for 12 months in a year. If you pay special attention, you will see that it is after the option expiration the stock price start to jump to another level, and then float . The big boy is playing the game, hey not only make money from the rise of stock price , but also from selling calls. So, more than 70% chance that the stock price of CPQ will start to move, especially for stock which had lots of institution holders.