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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: mp who wrote (2851)	2/17/1999 11:31:00 AM
From: genek	Respond to of 4722

When I got home at 1am last night, I flipped on CNBC (or was it Bloomberg?) and saw that HWP exceeded consensus estimates, my heart skipped a beat. I had added onto my Feb 75 put position, from 72 all the way up to 82 and on the way back down -- I was sure that my just entire position was wiped out. When I saw that DELL only met the analysts expectations, however, I felt much, much better. If DELL got hammered for a "modest" growth rate of 38%, there is no way that HWP was not going to get slammed for their 2% revenue decline !!! I'm now selling my entire put positon. Didn't do quite as well as I had hoped (or have done before), despite a larger option position that I've ever done. Thinking this over, I think it's because I kept buying puts at 75, instead of 70 -- I just couldn't accept the risk. Interesting lesson here: To do it over again, I would have invested 75% in 75 puts, and then 25% in 70 puts bought at the last minute. Higher upside, but risk is insulated by having more in the money. Gene