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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Roman who wrote (31143)	12/13/1997 1:20:00 PM
From: Tom Trader	Respond to of 58727

Hi Roman--I am at a slight disadvantage given that the prices that you have quoted are presumably in Canadian dollars. I will confine myself to a generic response based on a review of the NN chart in US dollars--an opinion that is not based on the fundamentals of NN or the sector. NN is experiencing a strong down-draft -- a chart that shows almost a free-fall, not unlike other tech charts. It is at support of sorts -- but I fully expect that it will head lower because of the magnitude of the downward momentum. If you have followed my posts, you would know that I do place weight on momentum in relation to trading decisions. Basically something that comes down hard will go down further after a bounce and vice versa on the upside. The 27-28 level may be seen before it stabilizes and the 30 level is almost a given. As far as your position is concerned--if it is a trading position --whether the stock or the options-- then you would want to close it out on any bounce to the 37 level which should see heavy selling/shorting occur. If you don't want to close out your position you may want to buy some protective puts at that level. If you are a long-term investor then you would either look to ride it out or buy some puts to protect your investment -- at least three months out and sell some covered calls to recover premium both as income and to pay for the puts that you buy. Hope this helps--and please recognize that I may be completely wrong.