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

To: Elwood P. Dowd who wrote (24855)	4/23/1998 5:11:00 PM
From: Jimbo Cobb	Read Replies (2) \| Respond to of 97611

Sure it counts, the only difference is that as a shareholder you have to shell out money to own the stock. As a put seller, I receive money, put that money in the bank and earn interest on it, and sit back and root for the stock to go up...If it goes up over $30 (3rd Friday in January), I simply keep the money and the put expires worthless. Obviously, the downside of selling puts is 1) if stock explodes, you don't continue to make more money on the upside 2) if stock totally tanks, you take a big downside hit just like if you'd owned the stock. But I like the concept on getting the money up front, earning interest on it instead of paying margin interest, and getting some addition time premium such that if I do end up owning the stock it is at $30-4.25 = 25 3/4 instead of the 29 it would have cost me to buy the stock at the time I sold the puts !!!! YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I LIKE IT !!!!!!!!!!!!!!!!!!!!!!!!!!!!! GO CPQ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Mark.