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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (15181)	3/20/1998 1:47:00 PM
From: Chris McConnel	Read Replies (1) \| Respond to of 94695

Hi James, I don't wish to contest your strategy, what works for you works for you, just wanted to point out an alternate scenario. Trading out the stock for calls his been my way of dealing with situations where I believe the stock is going to take a hit but I wish to hold long term, my feeling currently about CPQ. Not everyone could employ this method because I believe they would exhaust the supply of calls (isn't that what open interest is about?) and the call price would go through the roof. I'm a small time player (only about $30,000 in the market) so I don't think my trades are going to affect things that much. << I just looked and can what I want, AND they can't get called below $35 >> I guess, my feeling is that in 20 months, CPQ could easily raise above $35, which would then limit your upside potential. But if you intend to hang on to the stock, selling calls is probably a good idea. - Chris