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

To: Mike Gordon who wrote (22957)	3/22/1998 2:07:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Mike, Try this thought process for a moment. Long term CPQ stock will recover either this year, or next year. This is a given for this question. Short term question. Given that CPQ will recover, are we better off in the future if: A.) The price drops to 20, and then to 17 or 18 prior to recovery. B.) The price hangs around 22 to 23 and then recovers. C.) The price runs to 30 and stays there until it recovers. D.) Total crash to $10 after DEC and first quarter combination announcements. I'm a Bull on this company. I'm working toward a target number of shares. I presently have 70% of these target shares. So, you can bet I like scenario A, because I don't think scenario D will happen. Although it is a dream I might share with the Bears. Let the Bears take home some bucks, and sell me some cheap stock before they cover. That way we all get what we want. Now with that said, I own 4 CPQ April 27.5 calls. I also sold 10 July 30 puts, and own 10 July 25 puts as insurance. The April calls are losers at this point unless a minor miracle happens. Figure selling cc's to recoupe on the loss is not wise with end of quite period, quarterly results, and DEC announcements coming. If CPQ, and DEC both make any money, with the current low expectations, I could lose money selling April calls. Will wait for announcements and evaluate selling cc's afterward. Made some pocket change on the March 27.5 cc. The July puts may be gold. It is too early to tell. I am tempted to make another Bull put at a lower bracket. But, again, the April announcements need to be heard. Had a 27.5 backed by a 22.5 bull put I retired when we had the run up to 35+. Should have retired the 30 backed by 25 at the same time. Mike, if you are selling naked calls calls you have mucho intestinal fortitude, or can watch the market more closely then I can. Day job is a real bother, but that's where the real money is at for me. NW