re: Jacob what else are you looking at?
I'm buying:
EMC LEAPs at 16, 14, 12, 10
NTAP LEAPs at 13, 11, 9, 7, 5
AMAT LEAPs at 30, 25, 20
TXN stock at 30 and below, LEAPs at 22 and below
CSCO LEAPS at 16, 14, 12, 10, 8
QCOM stock at 50, 45, 40, LEAPs at 35 and below
JDSU stock at 5, 4, 3, 2, 1
If we reach the lower end of all these buy-points, I will have to sell some of my housing stock (CMH) to raise funds, and I may exchange higher-cost stock holdings for LEAPs. I will also be willing to use margin (up to 30%), the first time I've been willing to do that since late 1998.
Usually, I try to buy only one stock in each sector. However, I can't decide whether EMC or NTAP will be the winner, as their markets converge, so I am buying both. How much of each I end up with depends on how many of my buy-points are reached.
Once 2 or 3 of my buy-points have been reached, I will sell higher-cost lots on rallies, to raise cash (and get off margin), and have funds in the event of a later lower low. |
