>>Anyway, I shall take a half-position at the 30-31 level and add to my position if it declines further.<<
Tom, earlier I said I expected "pretty good" support for WIND at 30, and I want to amend that. I see 30-31 as a key support level that will be tested, and I want to see what level of support really exists there before acting.
The software sector is richly valued and very vulnerable if the tech slide continues. ORCL and ADBE recently tanked, CA is wobbly, and MSFT was downgraded today. Could be we'll see another slide like last spring among small software stocks like WIND, DCTM, HNCS, SEBL, and CDN. Note: Today Bill Harmond, an experienced SI trader in the small-cap software stocks, bailed out of all his positions.
You mentioned that you would hedge your investments by buying puts in the stocks you expect to acquire. I was wondering why you are going this route, when at some other times you have hedged with index puts?
Greg |
