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

To: Andreas who wrote (23898)	4/4/1998 11:07:00 AM
From: Joseph Francis Torti	Read Replies (1) \| Respond to of 97611

Me too, Problem is I bought cpq at 29 13/16 and learned how covered call works a little too late. There is no covered calls premium worth buying now, to even get my money back or loses back (fast anyway). I am hoping the July 30 calls will go up to 2.00 then I may sell some to break even. I do not expect cpq to see $30.00 before the July 30 calls expired. I think cpq will range from 22.00 to 28.00 the next three months. Joe

To: Andreas who wrote (23898)	4/4/1998 12:32:00 PM
From: Mike Gordon	Read Replies (2) \| Respond to of 97611

<< Buying cpq at $26 and selling the May call for $1.00 with a strike price of $27.50 gives one a $2.50 return in about six weeks. I'll take the 6% in thirty days anytime.>> Andreas: Thanks for supporting my position. You're correct when you say the ROR can exceed 40% if you're disciplined enough to manage your investment daily. However, like you, I got stuck with 2K shares of CPQ by selling puts. However, this was turned around by selling CCs. You need to understand the math and strategies if you are to be successful. Mike