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

To: Night Writer who wrote (22950)	3/22/1998 1:25:00 PM
From: Mike Gordon	Read Replies (2) \| Respond to of 97611

<Now what do you recommend?> Night Writer: I've been struggling with next weeks strategy since Friday Night. I currently have two positions in CPQ, 20 April 25 calls, 8 of which are covered. I sold three weeks ago and therefore have a profit. I have 800 shares outright. No profit (Shares purchased Friday resulting from exercised short puts) I will make a decision next week to assume one of two positions: A) Sell 20 April 22.5 calls for 1 5/8 or better. B) Sell 20 April 22.5 puts for 1 or better. I have pretty well convinced my self that good news is forth coming between now and April options x day. If so, choice B is the better bet. Implementation of B causes me to keep 800 CPQ and watch carefully the 12 uncovered calls. Revenue received from B also acts as an offset to the April calls. Will probably buy them back at 1/2 or better. Choice A is good if we see a major decline in the market or if no announcements are forthcoming. Intelligence gathered from SI influences my decision more than any news reports over the weekend. Mike