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

To: Roads End who wrote (33768)	10/4/1998 2:31:00 PM
From: Night Writer	Respond to of 97611

Riechers, There was a lot of activity in the 35 strikes when cpq price was higher. I think a lot of stock holders may have sold covered calls without thinking about timing of the earnings announcement. They just thought about the stock price would they risk losing the stock.. I think a lot of buyers bought calls with an eye to earnings announcements. Traders selling naked options might also be comfortable at this level. I sold Oct 35 puts with an eye to earnings announcement some time ago. The $30 and $32.5 strike prices are too low to sell covered calls. Stock holders want a better price in case the stock is called. The price is too low to sell naked calls. NW

To: Roads End who wrote (33768)	10/4/1998 2:47:00 PM
From: Night Writer	Respond to of 97611

Riechers, TA from an amateur. If the share price is at the lower Bollinger Band but RSI is greater than 30 then the trend will continue. If this TA is any good, we need something Monday to break the trend. Maybe no earnings warning or a good economic event would do the trick. 207.95.154.130 If you look back, this TA chart is telling the call sellers that 35 is a good selling point. That combined with 35 being a decent exit point for many stock holders makes a strong covered call sellers market. The prospect of an earnings surprise to the upside makes for a strong buyers market. Right now, it appears the covered call writers are going to make some money, but it is still a long time to expiration day. If I had sold calls, I would close the positions out now while cpq is under 30. NW