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

To: Dulane U. Ponder who wrote (17760)	2/20/1998 1:40:00 PM
From: Hugh W.	Read Replies (1) \| Respond to of 97611

If you look at open interest on CPQ Feb calls and puts. The ratio is 2.5:1. This is why CPQ dropped to 33+. It could drop to as low as 32.5. I will be losing 15K today. So what, I didn't sell when it was 26.

To: Dulane U. Ponder who wrote (17760)	2/20/1998 2:00:00 PM
From: Roads End	Read Replies (2) \| Respond to of 97611

Dulane...I've been trying to understand the implications of the options/stock relationship on option expiration day. One of the possible senarios posted earlier today used the $35 written call as an example. The way I understand that line of thought would be equivilant to writing mar $30 calls this comming Monday, pocket the $3-$4 then force the actual stock price down to $30 for March's expiration. On the face of it there does not seem to be common sense action reaction. I know there is a piece of this puzzle I'm leaving out. Could you or someone else shed some light? Thanks. Steve