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

To: Dr. David Gleitman who wrote (36859)	11/18/1998 10:41:00 PM
From: Yargnad	Read Replies (3) \| Respond to of 97611

Dr. Gleitman: This is expiration Friday, am I correct? Seems like pushing beyond 35 at this point is where we run into resistance. Any thoughts for Friday and beyond. Thanks. Yargnad(Dan Gray)

To: Dr. David Gleitman who wrote (36859)	11/18/1998 11:57:00 PM
From: Night Writer	Read Replies (2) \| Respond to of 97611

Dr. David, IMHO Dec covered calls are dangerous right now if you want to keep your stock. 1.) The FED normally does not like to make rate adjustments in Dec. However, the FED had not been normal lately. 2.) A Holiday rally may happen. 3.) The closer we get to end of year with no earnings warning from CPQ the more likely CPQ is to enjoy a price increase. 4.) I think the MMs may start buying some shares due to potential earnings in 99. 5.) If it starts up the shorts stop losses start kicking in and that will help build a new base some where north of $35. If you find the Dec 37.5 call price attractive, sell 20% of you shares there and wait to see what happens. You can always sell more calls in a different month at the same or higher strike price. It is a strategy I use to keep my mistakes from driving me insane. I am an still an amateur at options after trading them for some years. NW