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Technology Stocks : All About Sun Microsystems

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To: rudedog who wrote (39524)	12/20/2000 12:47:06 AM
From: Prognosticator	Read Replies (1) of 64865

Interesting, the CBOE quote tables showed April and July, but not June (http://quote.cboe.com/QuoteTable.asp?TICKER=sunw&ALL=2). I wonder if the June ones are hangovers from their acquisition of Cobalt? You're right about the thin trading, it can be a real problem. I got hit with a nasty 'quoted on chigago, executed on pacific exchange' trade at Schwab which took 1/2 a point off my sale (thats about 5% of the transaction since options are usually so low in price). So I always look for options with plenty of outstanding contracts and decent volume, avoiding the odd multiples like 32.5 etc. The other issue I forgot to mention, which you rightly raised, is that you should 'average' in to your positions, in options as in stocks. But you have to balance that with the commission, which can be significant. After commissions, thin trading, bad execution and rapid swings sometimes I'm lucky to get out even. But occasionally the returns make it worthwhile, and it helps to distract me from the carnage wreaked on my portfolio by the bears. P.

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