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Technology Stocks : Wolf speed
WOLF 21.05-7.9%3:45 PM EST

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To: RocketMan who wrote (2046)2/13/2000 9:46:00 PM
From: Matrix_Man  Read Replies (2) of 10714
 
I think if I was out of cree and wanted to get in, but was afraid of the recent run-up

Shorting puts is a nice strategy which I employ from time to time. If you are concerned about a pullback, then this is NOT the time to be shorting puts. If you think there will be a pullback, but want to get in now anyway, I would suggest buying the stock and selling calls for downside protection. Then, if it continues to run, you win. If it pulls back then you buy the calls back and THEN short some puts. Then if it continues to fall, you get more stock at a nice price. If it recovers then you still get to keep the put premium and your original stock.
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