Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Wayners who wrote (28074)	6/24/1998 9:13:00 AM
From: williet	Read Replies (2) \| Respond to of 97611

CPQ will languish for another three weeks. Earnings are what move equities and CPQ has said there will be neglible earnings this quarter, thus where is the motivation to purchase the equity. The money managers want a fast buck and this one is not at that state YET. I know that by 15 August, CPQ will be trading around 32. Of course DELL will be around 115 by then, the difference is that CPQ will continue to head north and for once DELL will languish as the CPQ servers start to hit the market in the fall along with ALPHA and ALTA VISTA. I agree, sell covered calls in this enviroment, and patiently wait for rocket ship to blast off. The engines have been started and the last million gallons of O2 are being added prior to final countdown. This launch will be glorious and take those on board to many new heights.

To: Wayners who wrote (28074)	6/25/1998 9:30:00 AM
From: Dr. David Gleitman	Read Replies (1) \| Respond to of 97611

At the risk of sounding stupid, I never took the time to learn about covered calls etc. Can you provide some enlightenment. Thanks, David

To: Wayners who wrote (28074)	6/25/1998 12:28:00 PM
From: Dr. Id	Read Replies (2) \| Respond to of 97611

The big risk of this strategy is that when CPQ begins to move, it will move fast and you can very well lose your upside. I don't like writing cc's on a stock that I'm holding for long-term potential. I think its a better strategy on a stock that you originally intend to play in that way, and don't mind having called away. I envision CPQ as my retirement...would hate to have my retirement called away for a short term gain! And even if one thinks it will languish at these levels for a few months, no one really knows. If the market usually responded logically, this would be a much easier way to make money. Unfortunately, it doesn't, and CPQ could report flat earnings and the stock could start to go up (Hell, AMZN has NO earnings and its up over 60 points this month!) JB