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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: andyama who wrote (18227)	2/11/2001 7:31:08 PM
From: Stocker	Respond to of 24042

Hi andyama, I've done it once and a while in the past and I've once again started to run numbers on a few banged up but quality techs. Frankly, it's been a while since I've looked at it because it's generally not a good idea if the market looks toppy as it was last summer (just picture yourself having to go in now and buy an extra 200 JDSU @ $120 because of some puts you wrote last summer and you'll understand). It can work nicely though when the market has seen big declines and sentiment is low. I did it on a few stocks in the fall of 1998 and it worked out great. I can't emphasize enough though, don't just look at the premiums which seem like free money. Focus instead on quality companies with strong management and businesses that will come back. Ex - If you tried to catch a bottom on LU six months ago with strategy, having to go in and buy more stock now at a higher price might not be that appealing given the troubles they still have. Stay away from troubled co's. Gook luck!