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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (13623)	12/30/1998 10:45:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

J.P., I was hoping we don't see a move up in the stock for the next day or two because I wanted to get into Jan 150s or even Jan 160s. Of course, I was not going to "bet the farm" on it. I was hoping that Jan 150s drop to 5/8 or below. At this point it does not look like it will happen. I wish MSFT would post their earnings release date soon. If it is Monday Jan 18 -- I would consider the Jan 160 (if I can pick them up for about 1/8). I actually like to buy out of the money calls close to expiry date -- it is like buying a lottery. I like the FEB 150s because a good earnings report and/or a stock split could cause an explosive move in the stock. I was thinking there could be tech wreck in February but am having second thoughts. You could have IBM or MSFT announcing a split effective for sometime in February. A move up in either would prevent a downward pressures in the markets. Remember how an IBM share repuchase plan announcement in October 1997 -- pushed the markets right back up. A drop in the net stocks may prompt a lot of them to announce stock splits which would act as support for their stock prices. Furthermore if IBM/MSFT/CSCO/INTC/DELL and other biggies are positive about the future, it is hard to imagine a severe correction. The level of the US dollar has turned around the fortunes of the big techs. I think the August to October 1998 "correction" made retail and institutional investors more "hardened" bulls. This time there will be much less panic, and buyers will quickly step in on dips, IMHO. Just my guess.