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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 81.16

-2.4%

Feb 4 3:59 PM EST

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To: Elroy who wrote (67954)	5/21/2005 8:25:08 PM
From: Sr K	of 77400

I was quoting mindmeld in #67909 when he wrote: Maybe you are right. But then an uncovered call option that they'd be buying would be different than the covered call option they typically give an employee. Uncovered options are riskier, which means they carry a premium to covered calls. Isn't that right? I put his term "uncovered" in quotes because he used the phrase "an uncovered call option that they'd be buying". My point was buying and selling an identical option, even aside from liquidity factors will have a lower price for selling and a higher price for buying.

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