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

To: E_K_S who wrote (24835)	12/15/1999 4:25:00 PM
From: JC Jaros	Read Replies (1) \| Respond to of 64865

Because Sun is a vertical company, and one with such 'low hanging watermellon', I've always considered SUNW to have a bit of diversification in itself. 4 years ago, I worried about 'diversification'. Nowadays, SUNW makes up more than 2/3rds of my portfolios. I didn't really set out to have concentrated SUNW portfolios. I just never sold any. -JCJ ---Disclaimer: Not intended as investment advice. You are after all reading a post from a guy who believes in fairies. <g>

To: E_K_S who wrote (24835)	12/15/1999 4:56:00 PM
From: Alok Sinha	Read Replies (1) \| Respond to of 64865

Your strategy certainly makes sense given your investment objectives. I on the other hand sel covered calls every time the stock moves 10-15 % in a week or so, and buy back inveraiably when it pulls back. I typically will buy back by covered calls with a return of 50% or so. I did get burned last month when I had to cover my 125 Nov calls for a big loss when the stock just kept get going up and up. If the expiration is still a few weeks away and the stock is moving very fast , I buy back my calls and sell the next higher strike (I had to do that three times for DEC. You do lose a few bucks each time but the stock gains more than offsets that. Finally when the stock stabilizes, the calls that you sold at the highest strike will expire out of the money (as my Dec 80s will I think) and you probably still end up gaining collectively on the calls. With the kind of moves SUN has made it is always sensible to give up some paper profits (I don't think long term investors are looking at selling) by buying puts. I had bought the 140s (befoe the split) and then some 80s last week - which I bailed out of yesterday - but I am not complaining. I couldn't buy back my 85 Jan calls today (if the stock moves up to 78-80 I will probably sell calls on my remaining positions, if it moves back down I have a limit order to buy back the 85 Jan calls for 2 1/8 - sold them for 5 1/2.) SUN has grown to be roughly 40% of my portfolio and I have regretted everytime I have sold some to diversify. So now I just buy puts (and sell calls if I consider it overvalued) and sell naked puts when I think it is oversold. Since I have the Jan 70 puts long, I sold the Jan 65 puts today. The recent strength / weakness is simply due to momentum players moving in and out. With 80% of the plan shipments for the qtr in the first 2 months (according to Pru) I expect it to have a blowout quarter like Oracle's. Regards Alok