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

To: QwikSand who wrote (14891)	3/22/1999 3:30:00 PM
From: Alok Sinha	Read Replies (1) \| Respond to of 64865

I agree that the straddle is risky, but hopefully SUN can stay in a 20 point range over 5 weeks. Also option time premiums decline as you approach maturity. If there is a significant move one way or the other, I do reduce my risk by going long on the next strike (up or down). Also the naked puts that I sell (if I do get assigned) simply reduces my buying price (even lower if you consider the call premium). This month I se greater risk of 100 puts being in the money than the 120 calls. Got the first leg of the straddle in place by selling the 120 calls for 3 1/2 this morning. Also bought Dell puts (that stock is looking extremely weak). Regards Alok