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

To: Mike Gordon who wrote (22973)	3/22/1998 4:50:00 PM
From: Night Writer	Read Replies (2) \| Respond to of 97611

Mike Gordon, Figured you had to be watching the tape if you traded naked options. Better yet a wife that knows how to watch the tape. I don't have that situation. I have to be more conservative, and prepared to pay the price. I tend to go out a longer and close my positions out when the opportunity presents itself. The April and July options were in place before the split. The one position I closed made nice dollars. I couldn't move on a timely basis to close the other open position when the opportunity was there. Your situation is such that you could have closed it. Hope the opportunity come up again before July. April is just plain shot IMO. Win some lose some. Mike, for the plan I am committrd to, D would be a dream to totally fill my target holdings, but not happening. C is no real opportunity in my mind, and possible, but unlikely. B some opportunity that I will add if things feel right, and strong possibility. A is a definate addition to holdings, and a reasonable possibility. Hope you made it to the beach this time. Going to watch golf in a few. Watching the small balls.<G> That was good van wang! NW

To: Mike Gordon who wrote (22973)	3/23/1998 1:00:00 AM
From: Tim Wash	Read Replies (2) \| Respond to of 97611

Mike and thread; i have only been investing a few years, and have tried my hand at different put selling/covered call techniques, without a great deal of success. i think this is mostly due to my lack of experience and bad timing of my trades, but employing this strategy i have often found that it exposed me to big downside risk while limiting my upside potential. anyways, i was considering different option plays i could make on CPQ to lower my cost basis from 32 1/2... and i came up with the following interesting idea: how about selling the jan 20 puts on CPQ for $2? thats a 10% gain in 9 months... if i did this on as many shares as i could buy on margin (i would be willing to be fully margined on CPQ at $18/share!) ... that would be a 20% return in 9 months, or 27% annualized! with CPQ's excellent fundamentals, and the depressed condition of CPQ currenently, and with even the most pessimistic of views putting CPQ's absolute bottom at $15, this seems like an excellent play right now! you could go for the jan 22's or 24's if you wanted to go for a bigger return, or you could go for the jan 19's or 18's if you wanted even less risk... i seem to recall even some of the shorts on this thread conceeding that their 9-12 month price targets on cpq is 28-32. any suggestions on this play? does it sound as good a play as it seems to me right now?