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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (25115)	6/30/1999 12:55:00 AM
From: Dwight E. Karlsen	Read Replies (3) \| Respond to of 74651

either way, make sure you trade out of them prior to earnings release. I hold a different view. He's holding the Oct $80 strike calls, as am I. They are in the money good with the stock at $88 (I pd $7-3/8). Once you've got a profitable options position with the time premium already stripped off and a good long time 'til expiration, why not let 'em run? This is my best option position I've got into in a good long while. As has been said before, at ~43 times 2000 earnings, the stock has "room to run". And once we clear the 52 week high, I expect the stock to practically float up to $105-110 pretty easy, long before October options expire. William O'Neal (IBD founder) recommends that with options, you give the stock three months to make its expected move. I guess it's just a question of strategy. If you really have confidence in your stock and your position, you won't get shook out when the stock drifts down a few points during a given week. I'm sleeping well with my Oct $80 calls that I picked up June 15th. The stock has had resistance in the $88-89 area due to volume when it sold down through that area on the ride down from the high at $95, but I think the drift in the $85-$88 range the last 5 days has helped to work through that. As for exit points, a profit is never wrong, but patience at the right moments (whether 1 week or 2-3 months) can reward also. Obviously this is all predicated on the stock moving overall in the direction favorable to your position. JMO.