We show that correlated Gaussians with good angular momentum and parity provide flexible basis functions for specific elongated shape. As an application we study linear-chain states of four α particles in variation-afterprojection calculations in which all the matrix elements are evaluated analytically. We find possible chain states for J π = 0 + ,2 + ,4 + and perhaps 6 + with the bandhead energy being about 33 MeV from the ground state of 16 O. No chain states with J 8 are found. The nature of the rotational sequence of the chain states is clarified in contrast to a rigid-body rotation. The quadrupole deformation parameters estimated from the chain states increase from 0.59 to 1.07 for 2 + to 6 + . This work suggests undeveloped fields for the correlated Gaussians beyond those problems which have hitherto been solved successfully.