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Technology Stocks : Wind River Systems - Technical Analysis -- Ignore unavailable to you. Want to Upgrade?


To: carolyn walder who wrote (218)6/4/1998 3:31:00 AM
From: Peter Church  Read Replies (1) | Respond to of 431
 
Carolyn--- I have some cash and am looking for a good way to increase my holdings in WIND. There are several ways to play it. The current price near $30 is attractive to me, especially after spending a year following and basically agreeing with the argument that WIND has the potential to grow at a sustainable 45%. Last year, Allen pointed out that if that is true, the current price is very undervalued. Waiting for $20 may not be necessary. Plus, I would be sad to miss this buying opportunity.

Do you have any experience selling puts such as deep in the money puts November 45 @$14 or out of the money November 30's @$3.3?

I like the extra margin available with selling puts (20% margin). The deep in the money put has the potential for greater depreciation ($14) if WIND catches fire again. I don't have any experience with these. The out of the money put has more of a time factor (bonus) built in to it. If the the stock was put at a price of 27, I would be happy, but if the stock went up, the only profit would be $3.

Any comments appreciated.