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

To: Peter Church who wrote (219)	6/4/1998 4:37:00 PM
From: carolyn walder	Read Replies (1) \| Respond to of 431

Peter - I usually do not go out very far on selling puts and I most often do spreads. The deep ITM puts for Nov should work to your advantage IF we get a rally into the fall AND WIND participates. If they deliver the I20 revenue in Q3 and allow analysts to factor into estimates we will see estimates rise and that should trigger a rise in the stock. The question has been when...the risk is that I20 won't ramp up soon enough or may experience another delay. If the stock keeps waffling around the 30-35 or even 40 range I think that you will make money with less risk by selling shorter term puts (i.e., the July 30s) If the stock does continue down you just bought the stock at 30$, a pretty good value. Otherwise you get the premium each month.. works best when you don't expect the stock to do much for a while. I expect that to be the case barring any exciting news, or earnings surprises. Given WIND's track record of not publicizing "good" news (e.g., Cisco mention in 98Q4 report and Lucent mention in Q1) and their penchant for not reporting significant earnings surprises I expect we may see a trading range for a while longer. Just my opinion, of course... CArolyn p.s. If we go below 30$ and the 25s open up you can bet I will selling them...