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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (2246)	1/21/1998 10:18:00 PM
From: Matt Webster	Read Replies (1) \| Respond to of 8219

My Gut Reaction... I think that anyone who is long IBM should either sell it, insert the 100 puts, or sell some 90 calls. IBM has come a long way, and as investors take a look at today's price action and consider whether they want to watch two years of profits vaporize in a fit of momentum selling on news out of Asia, I think the natural reaction is to shorten the position. The way to hedge this is to buy a spread of, say, 100 puts, and a larger number of 105 calls to capture any significant move. With a stock in the 100 range, and analyst downgrades coming, it will be a several day long process of finding the bottom. Today's action in MSFT will only compound and confound the process. Just my gut feeling, Matt