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

To: FR1 who wrote (31418)	8/21/1998 9:46:00 PM
From: CGarcia	Read Replies (1) \| Respond to of 97611

Maybe soon the puts will outnumber the calls and we can move up faster!

To: FR1 who wrote (31418)	8/21/1998 9:52:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Franz, Appears that 35 is still a popular number. Look at the October 40 calls. They are getting to be popular. I have a theory. Compaq options have low time value compared to last year. The 35 calls were dirt cheap not too long ago. I think the MMs were buying calls, not selling them. Little guys can't defend call positions like the big guys. Also because of the number of shares and trading volume, I think it may be hard for the big guys to protect short calls. The imbalance at closing might have been to protect long calls today. In summary, Compaq was a beaten down stock of a major company. You buy long calls while the price is cheap. the stock goes up while the company recovers. Little guys are selling CCs to make a buck. You are now buying the stock. When it comes settlement day you have no problem buying more stock to defend your long position and exercising the calls while doing it. I don't know if this makes sense. Makes more sense to just sell or exercise the calls. However, this is the second month the long calls have been a winner with Compaq closing over parity. What do you think? NW