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Technology Stocks : WDC/Sandisk Corporation
WDC 243.29+0.6%Jan 22 3:59 PM EST

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To: pompsander who wrote (25885)5/20/2004 8:15:29 PM
From: Art Bechhoefer  Read Replies (4) of 60323
 
The preferred strategy for locking in earlier profits is to sell covered call options, not buying put options. Selling covered calls, especially if the expiration date is two or three months in advance, allows the conservative investor to make money on the premium as well as lock in the profit.

I think the only investor who would be interested in buying puts after two strong earnings reports might have suspected an effort to manipulate the stock price. In any event, an investor who is bullish because of the strong earnings reports may in the end make a lot more money. Options limit losses, but also limit profits.

Art
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