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Technology Stocks : Stock Swap

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To: Andrew Vance who wrote (12864)3/20/1998 5:32:00 PM
From: Judy   of 17305
 
Hi, Andrew

A quick note before the weekend.

On the spread strategy the upper strike was selected for the reason given, the lower strike was selected since that should provide strong technical support unless some new adverse fundamental news is announced. This lets you accomplish your objective at the least cost, based on how I read the stock and sector at the moment.

If you should be inclined to jump in and buy shares again when you feel that the stock and sector and market have corrected sufficiently ... don't jump! Consider legging into a synthetic leap long ... which is quite attractive when the volatility has been knocked out of the stock. btw, I may be employing this strategy for WFR when the yr21k leaps come out in June.
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