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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (13938)	1/23/1999 2:42:00 PM
From: Jerry Olson	Read Replies (3) \| Respond to of 64865

HI M... Yes i do think we will selloff some more... here's my P&F on SUNW....if it moves to print 94 that's double bottom sell signal..93 1st support, 89 2nd, 88 would be real trouble...the stock is strong and should hold well in any further selling.. also in the matter of "Naked Put Selling".... this is a wonderful way to capture premium while not having a problem if the stock is assigned to you at "your cost" basis... if you sell either the Feb 90 or 100 put or the Mar 90 or 100 put naked..you will take into your pocket using 10 contracts...between $3500 at the low or $11,000 on the high side... example...if you sell the Mar 100 put, you get 11,000 bucks right now in your account...if at anytime the person who "bought that" put wants to exercise...you will have to buy those 1000 shares for 100 bucks, less 11,000...or your cost basis is 89!!!!!!! now there is NO guarantee that will EVER happen...most option traders just SELL the put, to make their profit... this is a terrific way to capture serious money, while understanding you "MAY" have to buy those shares... most of the time, it will not happen...and better than that, the Mar expiration date usually holds the option buyer at bay...if SUNW is over 100 by then, they cannot excersize.....you keep the while enchalota...and guess what??? you can do it again...:>} i love selling naked puts...on quality stocks...no dogs please only the best...it's a no brainer... oh yeah...one bad thing COULD happen to you...the stock you have to buy at say 100, goes to 50...anything is possible...but even if that did ocurr, so you'll have to sit with SUNW till it rallied back...so what!!!!!!! hang tough, we are not out of the woods in this market...could hit 8750 on the low side...maybe...