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Technology Stocks : All About Sun Microsystems

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To: Bald Eagle who wrote (5834)11/30/1997 2:30:00 AM
From: Alok Sinha   of 64865
 
I usually protect the downside when I have a very large exposure to one stock with protective puts. Sometimes it is expensive but well worth the price in a volatile market. Too many times I have missed the upside on a stock due to covered calls, so I try to aviod them.
Also most of my SUNW position has been acquired through assignembnts on selling naked out of the money puts so the cost basis is not very high.

I agree diversification is important, but its benefits have been exaggerated too much. When the NASD tumbles all high techs get beaten up so not much benefit to diversifying with high tech only.

Regards

Alok
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