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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Ronald Allen who wrote (8693)	7/20/1999 11:30:00 AM
From: Roger Hess	Read Replies (2) \| Respond to of 21876

Profits are up 60% and the stock drops.... Could someone explain this to me? Is this a stock I want to be in?

To: Ronald Allen who wrote (8693)	7/20/1999 11:34:00 AM
From: Alok Sinha	Read Replies (2) \| Respond to of 21876

I think keeping a close eye on volatile stocks (even if it is a part of your long term portfolio) can be rewarding. I initially wrote Aug covered calls on my position when it got to 75 on the way up. When it got to 79 I sold Oct 865 calls hoping to buy back my Aug position for a loss but decided to wait for the earnings. Finally, last Fri I bought Aug 75 puts on LU and a host of other growth stocks that I hold. (INTC, SUNW, HD, etc). Except for Intel everything else has dropped substantially providing a good short term hedge for the portolio value. I find that options allow much greater leverage (than short positions) and once in this volatile market the premiums are worth the risk. To be honest, I would have held on to the short position till the high 60s (This thing has gone up in a straight line from 60 to 79, and a 50% pullback is to be expected). Due to the various option positions, I feel relatively secure in my holdings and I am kind of indifferent what LU does the next few weeks. I was surprised that they are predicting lower than expected earnings for the Dec qtr. Regards Alok