How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.69

+1.1%

3:59 PM EST

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To: codawg who wrote (27104)	7/22/1999 7:17:00 PM
From: t2	Read Replies (1) of 74651

An example of a strategy for this might be: If the option goes up 50% sell half of the position and then use a trailing stop on the remainder. If it goes down 25% then exit. Or, if you are buying for a specific event (earnings, analyst meeting) sell when the event is over Good strategy when you are not so certain of the market direction but have a good idea which way it is headed. However, if the market has corrected significantly, my approach would be to not do any profit taking and ride it out (even if it starts out down 25%). Last fall was the time to try this approach and this May to July was a good setup for your system according to my projections. In hindsight, both times were good for a don't take profits approach but it was just a matter of the risk i was willling to accept. I have been doing your system currently with put options on the nasdaq100---ready to take some profits--on half. That bounce yesterday in the Nas had me rethinking for a bit but i had decided to increase my short and put positions yesterday when the market was up 25 points. I covered my Sunw short today--uncertain of direction tomorrow---if it goes up again and i might go short again) Still have a hangup about ever shorting MSFT directly or even selling off my position--and will probably be holding it correction or no correction. I hope DOJ settlement rumors hit the newswires and the stock goes up. BTW--I don't have much experience with Puts or shorting and finding it interesting for now----as soon it works against me, i might be one to sit on the sidelines. I would rather be long on a stock than short. It might be pyschological--i guess.

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