All About Sun Microsystems Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : All About Sun Microsystems

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JavaGuy who wrote (17544)	7/2/1999 12:14:00 PM
From: Alok Sinha	Read Replies (1) of 64865

I have covered calls for Aug 75 and Aug 70s, both have appreciated 3/4 to 1 since I sold them. I also have covered July 67 1/2 (originally sold for $4.5) that I intend rolling forward after the labor day weekend when the premium drops further. I am tempted to have the stock called away, but capital gains tax rate is 20% on the stock and 28% on the options, so I am undecided. I have an order in to buy Aug 65 puts today, as I also see a pullback from these levels, esp. after earnings. I share your views completely. Due to writing successive month covered calls (and the substantial appreciation in LU, SUNW, etc) my portfolio return has greatly surpassed my wildest expectation. So caution is in order. Also if NAS goes up another 100 points by Aug my gains will be limited since I have sold calls on INTC at 65, LU at 75, CSCO at 70 and NT at 90, but I hate to buy calls back at these levels. I may also get some Oct 50s or 55s for the catastrophic scenario. The rally today in the face of srong economic numbers (jobless claims) is surprising, but it looks like traders want to go on the long holiday in an upbeat mood. Regards Alok

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next