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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: dr_elis who wrote (2861)	10/21/1997 4:19:00 PM
From: Sam Citron	Respond to of 10921

Michael, Buy your first 1/3 at around current levels, say 40. Buy your next 1/3 at 35. Buy your final 1/3 at 30. Conversely, sell (naked) puts at these strikes. If buyer exercises, you will have accumulated an excellent position. If not, you will have been paid rent. SC

To: dr_elis who wrote (2861)	10/21/1997 4:55:00 PM
From: sawgrass	Respond to of 10921

Sams idea is good , however,the naked put srategy will only pay rent if the stock price moves up. You will not benefit on the upside if the stock has bottomed here,but you will take home a couple points of premium to partially compensate fot the opportunity cost of not being long. To hedge yourself, an initial position should be placed . The size of the initial position relative to desired position (as a percentage). depends on how much risk you are willing to take on long position. In Sams example...1/3 now...... Naked puts@35 (1/3), Naked puts @30 (1/3). You may want to be more or less aggressive. Of course there are other positions in the derivative markets you could follow also. It depends on your objective. Long term vs. Short term horizon.