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

To: Andreas who wrote (17739)	2/20/1998 9:15:00 AM
From: S.C. Barnard	Read Replies (1) \| Respond to of 97611

Is anyone anticipating what a failure of Kofi Annan's (sp) diplomacy with Saddam/Bombing of Iraq will have on CPQ's stock price? These talks can begin to unravel quite shortly.

To: Andreas who wrote (17739)	2/21/1998 12:06:00 AM
From: ed	Read Replies (1) \| Respond to of 97611

If you retired and need constant income every month, and had 1 million in cash and do not want to put into the bank for 6% fixed income, then you write calls month after month. So what if you lose the stock? Just bought back the stock and write call again. Statically speaking the option players can't win all the time , some times they win and sometimes lose, which means as an call option seller, you just write calls everymonth and earn constant income everymonth.Generally, sell the calls one week after option expiration day everymonth, then you may not only earn on the stock price appreciation but the premium of the calls you sell.

To: Andreas who wrote (17739)	2/21/1998 7:41:00 AM
From: Mike Gordon	Read Replies (3) \| Respond to of 97611

<Should he buy back the option he sold for $2.00 and sell the following month option at $35.00 or should he sell the following month call at $40.00.> Andreas: When ever I write a call and subsequently get exercised, I generally turn around and sell the next months put. For instance, I sold the CPQ Feb 32.5'd last month. I was called yesterday. After some additional research, I will either write the March 35 or March 32.5 puts. I do this monthly. Mike Gordon

To: Andreas who wrote (17739)	2/21/1998 11:56:00 AM
From: Sundar Rajan	Read Replies (1) \| Respond to of 97611

couldn't help listening on your covered call discussion. Although not a big player I tend to write covered calls when stocks rally, for example, when CPQ was 37/38 I sold Apr 37.5's for 2 1/4 and bought them back later at a lower price. I consider these to be trades in themselves and if you are making a profit in addition to holding an appreciating equity it is great. problem is when a stock rallies big time i could miss out. last year when i wrote hwp july 55 calls for a measly 2$ and the stock went to 70 i missed on a 15 point run. nowadays i tend to write longer term calls that gives me a chance to buy back on a down day.