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Technology Stocks : PairGain Technologies

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To: PiedPiper who wrote (20849)2/22/1998 2:12:00 PM
From: ratan lal  Read Replies (1) of 36349
 
PiedPiper

Good valuable points and clear thinking.

personally I stay away from options including covered calls because I find that I get trapped if I sell covered calls. If the stock moves up, I dont want to buy back my calls and lose money. And I dont want to sell the stock for fear of having naked calls and the stock move further up. So I just wait it out and lose on the upside or get premium on the calls and watch the stock go down for more than the premiums. It prevents me from being nimble.

If you believe in the stock and buy it with a certain objective, why not go for that objective and if there are any fundamental changes, you can change you strategy and not be stuck because you have covered calls that prevent you from acting in your best interest at that time.

ratan
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