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

To: chapter11 who wrote (23375)	3/25/1998 3:43:00 PM
From: Tech Master	Respond to of 97611

chapter11- * OFF TOPIC * I have chosen not to use shorting as a profit strategy.... I guess if Warren Buffet and Peter Lynch feel the same way.... there must be something to it.... Tech Master P.S. Hope you make a buck or two near term anyway...

To: chapter11 who wrote (23375)	3/25/1998 5:00:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 97611

11; and ALL; WARNING ON OPTIONS..BOTH PUTS AND CALLS, and other stuff First off, Some of the options on CPQ..are effected by the past split..on the 18th In bought leaps Jan99..unbeknown to me at the time these things had a 2.5 multiplier built in , while the price and all looked A OK..each contract I bought..was actually 2.5 contracts ( i didn't know this )..when they funded instead of 9-5/8 a contract , ( the base price ) it was 24-1/16 a contract yeeeps...I had actually bought 2.5 times what I had wanted. This exposed me to a lot of RISK..my account went into margin and I didn't know about it ! Had this moved against me I could have been in deep kimshi..and forced to sell things at a loss, ( like I may have sold my APM before yesterday and likely would have to bring things back into balance ) If you e-trade talk to your broker before you trade in CPQ options some do this some don't ----------------------- As it was I was lucky..and I'd rather be lucky than smart if I had to chose. Just the same it shook me up to find out about this a week later, they were up nicely I dumped them all in my panic..made 2.5 times more than I would have had I known what I was doing <G> The real thing and I'm glad I found out was I intended to write some covered calls 2000 leaps..( out of the money )..but had they taken I would have had out a lot of naked calls, ( something I don't do )..( i rarely use any margin..never for leverage i one of thoes who pays for most every thing with a credit card, but have never once paid any interest..that sucker is paid monthly in full and always has been ) -------------------- 11; I never use stop losses they are a brokers dream, and very poor cover..you may want to read this..I posted on the APM thread..but forgot to put in how brokers can pick off stops..and do when they see enough of them.. After all that's a ready made market for them to short to.. and they do short. ----------------------- Message 3836143 republic.net