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

To: Bald Eagle who wrote (5910)	12/3/1997 12:44:00 PM
From: Alok Sinha	Respond to of 64865

That has happened to me before. Consider the following option strategy. If you are certain that SUNW may remain in the 38 - 42 range over the next couple of months you could sell naked puts for 40 or 42.5. You earn a premium today ($ 3.5 - 5.5)and the shares get put to you on expiry of the option (if it is in the money). The risk is that SUNW tanks big time and you are assigned shares for which the cost basis is much higher than the market price. (You could always purchase some lower exercize out of the money 35 puts to protect aganist severe downside). Not intended as investment advice (so don't sue me). I am getting tempted to sell covered calls also, but I might sell the April 45s or 47.5s, with the intention to buyback on any dips in SUNW price. INTC's jumping on the NC bandwagon to large extent validates McNealy's vision of thin client computing model. May not translete directly into bottomline soon. However, the MECA / SunConnect announcement, in my opinion, has far more revenue implications for SUNW because of the shift to personal finance management over the Web. Bankamerica (my bank) CEO David Couler sees the MSFT as the single biggest competitive threat to the banking industry as it attempts to acquire a slice of the disintermediation role of the banks. That had prompted the bank's to invest in the MECA venture. Alok