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

To: Dr. David Gleitman who wrote (28325)	6/29/1998 2:57:00 AM
From: Sundar Rajan	Respond to of 97611

There was a thread on covered calls here in SI sometime back..You may want to check it out. I was thinking of writing covered calls too but the premiums offered are not that great. If for example your cost basis on CPQ was 35 you could write Aug 35 covered calls and receive about 1/2. If CPQ reaches 35 by Aug expiry (3rd friday) they will take the shares from you - otherwise you can keep the premium $5000 for 10000 shares.

To: Dr. David Gleitman who wrote (28325)	6/29/1998 3:51:00 AM
From: Tony B	Respond to of 97611

OT SI Covered Call Thread exchange2000.com

To: Dr. David Gleitman who wrote (28325)	6/29/1998 2:52:00 PM
From: Dr. Id	Respond to of 97611

David, Since you are unfamiliar with call writing, I would recommend your reading "Options as a Strategic Investment" by McMillan before you do anything. You may make a few dollars on CPQ calls, but can also lose a large upside if the stock starts to appreciate in that time. There are ways to hedge your bets and maximize your strategy, but I'm not sure that CPQ is the best stock to write calls on at this time. JB p.s. I only write covered calls on stocks that I don't mind losing. CPQ will be a major long term performer (I'm hoping my retirement) so I don't like writing calls against it. I bought 1000 CPQ four years ago, and now have 5000 shares. When it starts to move, it REALLY moves.