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Technology Stocks : Intel Corporation (INTC)
INTC 47.76+1.3%10:17 AM EST

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To: Gabe Fernandez who wrote (1607)6/4/1996 10:05:00 AM
From: jiggy   of 186894
 
gabe: yeah, momentum is definitely there right now, but i don't want to get in with the fear of getting reamed with overpriced stock. with 30 year bond yield around 7% i don't want to get into much stock here. merrill's analyst was key in getting momentum running since on the day of the analyst meeting there were not call buyers and the stock didn't do anything to indicate a rally in the stock. and geez! he did recommend a sell near the low and now he's recommending buy at the top! does that hold much weight? to me it means squat.

and on the options hedge -- if you're long stock then u should write calls against them as a hedge -- called a "buy-write" (buy stock, write calls) which is equivalent of selling a synthetic put. this is a classic hedge for long stock positions to protect yourself against erosion in stock price.
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