Gregory, that is a tough call! I was worried just like you.
I April of this year I sold bonds and other equities to buy Hi-Tech stocks such as INTC, CSCO, ORCL, MSFT, and SUNW.
You could sell covered calls on SUNW. There are none for Dec. but you can sell for Jan. or APRIL, yo gnerate income and keep your SUNW! Here are a few suggestions:
SUXAF SUX Jan1 130.0 C 8 1/4 -1 1/8 841 3019 10 1/4 8 1/4 10/20
SUXAG SUX Jan1 135.0 C 7 1/4 -7/8 176 2839 8 1/4 6 1/4 10/20
SUXAH SUX Jan1 140.0 C 5 1/2 -7/8 281 4458 7 5 1/2 10/20
SUXDF SUX Apr1 130.0 C 15 -1/4 91 1271 16 14 1/4 10/20
SUXDG SUX Apr1 135.0 C 12 7/8 -1/2 8 981 13 5/8 12 7/8 10/20
SUXDH SUX Apr1 140.0 C 10 3/4 -5/8 25 1433 12 10 3/4 10/20
I have SUNW in my long portfolgio and trading portfoglio.
I sold SUNW at 117, 118, bought back at 112 plus and sold at 119 and 120 last week. That was for 75% of my total USNW holding. (witht he proceed I bought Argentine Government US dollar bounds at $ 89.30 for 100 face value, taking home 11.5% a year net, and yield to maturity in 2008 is 12.5% plus or minus!)
I sold calls on my remaining SUNW as per above schadule. If they buyers get to excercise tha calls, I still have made plenty of money. If not, I keep the calls. Remember, you can't kiss all the girls! You can sell and take profit and fight another day, or you can baby-sit with the SUNW and probably still come ahead. In my case, I will take profit when I can. |
