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

To: Bald Eagle who wrote (6518)	1/5/1998 4:24:00 PM
From: Alok Sinha	Read Replies (1) \| Respond to of 64865

Rather than wait for a dip, I use a different strategy to accumulate shares of companies that I like. I just keep selling out-of-the money naked puts at the exercize price (which I am comfortable) with till I get assigned. That reduces the cost basis. It can be a risky strategy if the stock really tanks bigtime. In terms of risk, it is no different than writing covered calls and you need to have enough in your account to meet maintenance requirement (usually 1/4 of the market value of the stock - out of money value) Nice action in SUNW today. Hoping for 45 by options expiration. Regards Alok