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Technology Stocks : Veeco Instruments-Who? -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (2568)	11/24/1999 7:33:00 AM
From: Mark Ivan	Respond to of 3069

Carl, I think VECO is just suffering from profit taking. We went from 25 to 49 VERY quickly, and a good 50% pull back may be good. Futures are down some, so I may pick up some VECO at the open and some at sub-40 again. As far as RMBS, I see you are still predicting its demise. If you're right, you'd do very well. The problem with shorting RMBS is the short interest in itself. It's just so darn high (and maybe for good reason), a short squeeze could absolutely kill you. If Schwab has none or little shares availabile, they might have to close your short position quickly and without warning. I would stay with deep ITM Puts; very little time cost if you're deep enuf in the money. Plus, your buffered a bit if the position goes against you. As the option comes closer to ATM, you won't lose dollar for dollar like a straight short position. It doesn't surprise me that Schwab had no shares to short. I get that a lot from them, but I mainly short lower float type companies. Mark