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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (35350)	2/22/1998 9:03:00 PM
From: Dave Triplett	Read Replies (3) \| Respond to of 58727

The situation was; 1. I bought CPQ (Compaq computer) at 33. 2 A while latter CPQ goes up so I SELL Feb35 calls. 3. After a slight downtrend I buy back the feb35 calls for a profit. 4. I Sell mar35 calls 5. latterI get nervous because CPQ looks like it may go down so I BUY protective puts at a very low cost. (Insurance). 6. I know that to exercise my puts I would have to buy back my calls. 7. CPQ goes back up by last friday. 8. I don't want to sell CPQ and I want to keep my mar35 calls and figure that my puts will expire worthless because its friday (exercise day) 9. Saturday Schwab calls me telling me they exercised my puts and sold all my CPQ shares, leaving me with mar35calls uncovered in an IRA. They demanded I buyback the calls or rebuy the CPQ shares back monday at market. What is going on?.