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

To: Prognosticator who wrote (39498)	12/19/2000 6:02:57 PM
From: hobo	Read Replies (1) \| Respond to of 64865

There has to be a large short position in SUNW right now, for the price to have been driven down so far on no news. Not necessarily... particularly if the buying was done on margin AND unprotected without covered calls The selling could be caused by continued margin calls as the unprotected portfolio continues with its march to lower levels. Calls are certainly risky in a bear market, but I believe (perhaps wrongly) that SUNW has been oversold, and will report strong earnings, Then, if you so believe, and do not mind the possibility of owning more SUNW, the case to sell (cash) covered puts is a bit stronger, since if you are right, the premium received will make life a little easier. If you are "put" the stock, the cost still is softened by the premium received. This DOES NOT mean that SUNW could not continue to go lower.