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

To: Mike Gordon who wrote (18631)	3/1/1998 6:22:00 PM
From: Andreas	Read Replies (1) \| Respond to of 97611

Mike; I've got a question for you. The march 32.5 cpq put closed on friday at $1.50. Suppose I sell the march $32.50 put and receive $1,500 less commissions (assume for the moment 10 contracts). I pocket the $1,500 less commissions. Then the price of cpq stock drops to $29.00 by expiration date (March 16, 1998). The 1000 shares of cpq are then put to me (sold) and I have to come up with $32,500 plus commissions to buy the 1000 shares of cpq at a time when the cpq shares can be bought in the open market at $29,000 plus commissions. Are you not concerned about this scenario or worse that cpq drops even lower than $29.00?