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

To: rupert1 who wrote (60681)	5/6/1999 6:46:00 PM
From: rupert1	Read Replies (2) \| Respond to of 97611

I am curious about sentiment. Does today's rise cause anybody to think of adding to their CPQ position, if so at what price, and if not why not?

To: rupert1 who wrote (60681)	5/6/1999 6:57:00 PM
From: rupert1	Respond to of 97611

The WSJ seems to put it down to Option Buying (Calls) in COMPAQ. May 6, 1999 ----- - Out-of-the-money call buyers descended on Compaq Computer Corp. With the stock up 13/16 at 24 3/16, they primarily bought June 25 calls, a trader said. The June 25 call gained 1/2 to 1 11/16 on volume of 18,756 contracts, compared with open interest of 9,140 contracts. May 6, 1999 ---------------------------------------- Options Report: Traders Buy Volatility On Rate Hike Worries By STEVEN M. SEARS Dow Jones Newswires NEW YORK -- The bond market rolled over, stock prices fell, and volatility surged higher in the options market on fears of an interest rate hike. Traders took profits on winning positions and dumped their losers so they wouldn't get stuck in a falling market if Friday's April employment report is worse than expected. "Things are a little spooked," a strategist at a major options-floor trading firm said. Across the options market, traders bought options because they think volatility will continue to increase. Very few people were willing to sell options because they don't want to be short volatility, he said. The option market's fear gauge, the Chicago Board Options Exchange Market Volatility Index, or VIX, gained 4.51, or 17.4%, to 30.49. The index historically ranges from 17 to 25. When the VIX edges above 30, traders get nervous because it shows that the psychology in the market has soured. "People are scared," said Paul Foster, 1010WallStreet.com's options strategist. A lot of traders were ready and waiting for Thursday. In Wednesday's session, they bought May 670 puts on the Standard & Poor's 100 index. With the index down 13.02 at 699.32, these traders are counting their profits. The contract, which closed Wednesday at 8 1/2, is up 6 at 14 1/2 on volume of 7,127 contracts, compared with open interest of 10,918 contracts Elsewhere in the options market: - Out-of-the-money call buyers descended on Compaq Computer Corp. With the stock up 13/16 at 24 3/16, they primarily bought June 25 calls, a trader said. The June 25 call gained 1/2 to 1 11/16 on volume of 18,756 contracts, compared with open interest of 9,140 contracts. - The CBOE's equity put/call ratio was a bullish 0.35. Overall, 153,486 puts traded, compared with 433,281 calls. - The CBOE's index put/call ratio was a bearish 1.84. Overall, 94,194 puts traded, compared with 51,223 calls. -By Steven M. Sears; 201-938-5355

To: rupert1 who wrote (60681)	5/6/1999 11:01:00 PM
From: QuentR	Respond to of 97611

Victor, In the case of today, there were a lot of institutional selling interest. They set the price as high as they thought they could get and the market moved up accordingly. Because there were enough buyers they could dictate the price. IMHO the heavy buying over the past few days set us up for the move up. The question is will the process continue. Institutional interest was higher before 1 pm along with volume. Volume did pickup at the closing along with the price. IMHO, this will continue tomorrow if the market can hold up.