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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Williams who wrote (9088)	11/18/1998 6:11:00 PM
From: Riskmgmt	Respond to of 14162

Andrew re:In regards to SUNW and W.I.N.S. (Definitely not Wade Crook)I was wondering if the Microsoft lawsuit should cause us to rethink some of the TA. I believe most of yesterday's news except the MS lawsuit issue should not have a long term impact that will cause SUNW to sustain a higher valuation(SUNW always puts out tons of news releases). But based on the lawsuit should we expect another SUNW trading range to be defined? If so, buying puts at this point would not be advisable. On the other hand, if we think that something close to 50 could be seen again near term, then yesterday's jump only creates an opportunity for additional profit. Lawsuits are tricky to predict and then there are always appeals, reversals etc. Each investor has to determine for themselves the "true" value of a stock. SUNW having broke out from it's previous high is in a new trading range, the only question is what is the low and when will it go there. My guess, FWIW is that, regardless of other factors, a stock that had a low of about $39-$40, 5 to 6 weeks ago and has zoomed to touch $70 (closing today at $66 and change) is due for a pull back. I have owned SUNW too, for about 4 years and found that it zooms up only to retrace sooner or later, usually sooner. Look at the chart. Is it different this time? Perhaps, but I'd bet (and I am) that you will see SUNW at least below $60 if not $50 within 6 months. Good luck, Ray