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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Paul Fiondella who wrote (24934)	1/13/1999 4:44:00 PM
From: Paul Fiondella	Respond to of 42771

A strategy gone to hell You can read about it by clicking the post next to the name above. In brief, I was planning to sell my long position and keep my short position protecting it with calls instead of long stock. This was a bet on NOVL ranging in the 19+ area. Then came the move into the 18's yesterday. So I started covering half the short position yesterday and found myself going double long (both calls and stock.) Then came Brazil this morning before the opening. I finished covering the short position and found myself sitting on a lot of stock at a price in the 18 (not the 19!) range on the rebound. (At least we got a rebound!) So I sold the rest of my long cash position. I'm still ahead the $800 I made before Brazil (plus the $8 a share --- see previous post.) but I didn't make any more than that and I took a real downside risk. Why do I mention this? Because some people take an extremely naive and optimistic view toward this bubble market. I though I had a very good strategy for NOVL to the upside. Then Brazil reversed the scenario and I had to run for cover. Some people here have no cover. ================= Keep in mind that when a market moves the way it did today, they open stocks much lower than the previous day. For example EGRP closed yesterday at close to 101 and opened today at 73. My long position in NOVL is now confined to Feb 17.5 Calls.