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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (13886)	3/8/2002 4:45:30 PM
From: Gary Martin	Read Replies (2) \| Respond to of 17183

Hi Jacob, I am in agreement with you regarding the possible double bottom in EMC around the $10 level. If you believe in classical chart formations, you might also see the double top sandwiched in between the two lows at the $18 level. Confusing eh? Rather than commit funds to buying long calls which may deteriorate while I'm waiting for a price rise in the stock, I may sell some July $10.00 puts at about $1.25 and hold the cash while committing to buying the stock (if assigned) at a net cost of $8.75. If nothing happens I get to keep the $125 per put. If the rally starts, I have some cash to get on board with calls. I always like to have someone pay me to wait, especially if I'm not convinced the stock price decline is over (a downward revision in earnings just came out 1-2 days ago which may lengthen the time until we rally. Also, if the double top at $18 is the active formation, it projects a price below $10 to flush out all the weak longs.). Anyway, it is just an option trading idea with some strengths and weaknesses to sort out for oneself. Good luck with the LEAPS, I'm hoping for a nice rally too! Gary