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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: SpecialK who wrote (6316)	12/10/1997 9:38:00 AM
From: WBendus	Respond to of 42804

Ketan, In this market that is not a good strategy, at least in my opinion. Asia is a bigger problem than we are realizing. If you want to sell puts, in hopes of establishing a position in this stock, then sell the puts that are at the money. Sell the January 25 or 22 1/2. By the way, you can't trade options in a cash account and you need at least 10,000 in equity plus the required margin before you can go naked. Selling puts is a good way to buy stocks cheap, but beware of the emotions of actually have to buy as stock that is moving down. In technology there is a lot of momentum that works with stocks, both up and down. I hold shares of BAY and I sold calls against it a couple of days ago and yesterday afternoon bought some december puts (double the size of my long position) as a hedge. In hindsight, this morning, that looks like it is going to turn out to be a very good move. I will probably sell of half of the position for a nice gain and hold the rest to continue my hedge for the next week, just to play it safe. Wayde.