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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Alok Sinha who wrote (18623)	8/13/1999 11:00:00 PM
From: Charles Tutt	Read Replies (2) \| Respond to of 64865

My world view is a little different from yours. I think energy prices have nearly peaked, and will soften (probably by the end of the year). Indonesia, Russia, and other oil-producing areas of the world in need of more hard currency will see to that. I also think that nothing the Fed can do will ever "eliminate uncertainty about rates from the market" and that real interest rates are already too high; it seems especially unlikely that the Fed, as a political animal, will apply the brakes in more than a token way as we head towards an election. A dramatic rise in interest rates could quickly bring back deficit spending even without a tax cut, and the Fed knows it. I'm no options expert, but aren't covered calls the equivalent of selling naked puts, so assuming you buy puts without much price movement, won't they just cancel out part of your buy-write position? Or are you building a put spread? All JMHO, and I've been wrong many times before.