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Technology Stocks : All About Sun Microsystems
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To: Alok Sinha who wrote (24826)12/15/1999 4:12:00 PM
From: E_K_S  Read Replies (2) of 64865
 
Hi Alok: The last covered calls I sold for SUNW were the October 72 1/2's for $10 back in April on 25% of my long term position. I never bought them back when they hit $3 1/2 and eventually bought them back for $18 ! As of Monday, what cost me $18 was worth $80. Therefore, I am very careful on selling covered calls UNLESS the stock is extremely over extended. I might consider selling a 25% position on my long term core holding if we see another run to $90-$95.

I also stopped selling naked PUTs as my core holding in Sunw currently exceeds 15% of my total portfolio and is really too large for a diversified position. I feel quite comfortable with the position I currently own. Some pundants
say you should own no more than 5% in any one security to maintain your diversification. Sunw is one exception in my portfolio to this rule .

I like the company and consider my holdings a long term investment and feel even at these levels it is not necessary to hedge my position.

EKS
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