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Technology Stocks : Remedy Taking a hit why?

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To: Thomas C (Hijacked) who wrote (243)5/8/1997 4:47:00 PM
From: Sundar Rajan   of 763
 
I don't know about $100000 but I bet $25000 on Clraify (when there was irrational selling to 6 3/4) recently - so far it has been good. You can protect yourself a little by writing covered calls after the stock has risen a few ponts but this only helps to a limited extent. You can also hedge by buying puts.

Fortunes can be made on small caps but also can be lost - look at Borland, Centura (Gupta), Informix and other software companies. Instead of betting huge amounts on small caps, you can bet small amounts by buying large cap options - I had bought May 135 IBM calls, CSCO May 50 calls - could have made a small fortune. Unfortunately sold them too soon!.

Sundar
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