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: Dr. David Gleitman who wrote (32979)	9/15/1998 10:33:00 PM
From: Eddie Kim	Read Replies (1) \| Respond to of 97611

cboe.com Hit "Market Quotes" CPQ is one of the worst stocks for writing covered calls. The premiums are so low it doesn't make it worth given that CPQ could "pop" at any time. You could sell the Sept 32.5 for a quick 1/2...but that's cutting close. Of course I think this market is going down..so it might be good to sell CPQ at 32.5 on friday...if of course it gets that high.

To: Dr. David Gleitman who wrote (32979)	9/15/1998 10:35:00 PM
From: Night Writer	Respond to of 97611

Check out cboe.com You might find this site helpful coveredcalls.com optioninvestor.com Look in the book store for this if you want to get serious. Options As a Strategic Investment by Lawrence G. McMillan NW

To: Dr. David Gleitman who wrote (32979)	9/15/1998 10:51:00 PM
From: Night Writer	Respond to of 97611

Dr. If you have the patience to do it, and don't mind having some CPQ put to you every now and then. I suggest writing puts when CPQ dips to 28 or 29. The lower the better. When it trades up to the 30s buy the puts back. Calls are too cheap to make any money right now. You have to go out too far with too low a strike price to get any time value. When you do that, you are locked into the stock if the price goes up. The call buyer will sit on the calls until expiration. Your money will be dead, and you will beat your head against the wall in frustration. I have been there. The only solution was to buy the expensive calls back at a loss and sell the stock. Brokers love the commission on the double transaction. Get a book read it. Trade on paper before using money. It will furnish you with a great education, and some good pocket change. NW