Hi Gary,
I've thought about selling puts. If I did, I'd use the 10s, too. But, if I sold them, then I'd have to set aside the $ to buy the stock if I get called. I don't like not being in control of whether or not I hold the stock, so I think I'll do it the simple way, just buying calls in increments.
The decay of time premium is mostly in the last 6 months. Everything I hold is 2004s, so changes due to change in volatility are actually a bigger concern now.
I'm guessing that double top and double bottom define a horizontal range we stay in for a while, 10-18, for perhaps all of 2002.
Just about every other tech I follow, is reaffirming or even raising guidance, for the forward several quarter's sales, margins, and EPS. EMC is the only thing in my portfolio, that is still warning, still seeing the analyst consensus estimates slide further down.
If you believe the LT story, this is a big buying opportunity. But I'm less certain, now, than I was 6 months ago, of EMC's ability to bounce back. I'm still buying, but less committed to holding, than I was earlier.
I'm very glad I decided I wasn't smart enough to pick the one best company in this sector, and decided to buy NTAP as well as EMC. If I had picked one, I probably would have bought just EMC, and that, so far, would have been the wrong choice. |
