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

To: Alok Sinha who wrote (24841)	12/15/1999 5:16:00 PM
From: rudedog	Respond to of 64865

Alok - On covered calls, I like to sell them when the expectation is that the stock will move up, but for whatever reason I think it will not - this generates a high premium with better likelihood it will expire worthless. If the stock is moving up, I prefer to sell puts, which looks like it would have been a great move at several points recently on SUNW. I have worked out of a losing call position by selling puts and using some of the premium to buy back the calls. p.s. (edit) As Eric says, if selling puts you need to be comfortable in taking the stock if put to you, or be ready to buy the puts back if the stock price heads down to the strike less premium...