Nancy Ho,
What I don't get from your post is if you really know CSCO will fall futher, how come you still hold it. I am a long term investor, and I used to have a lot of CSCO too. I only sell my core holdings, when I don't feel comfortable with their fundermental. I sold out CSCO, and INTCW last month, because I sensed both of them looked ugly. Unfortunely, both of them drop too much, and it doesn't make sense to cut the loss, or take the profit now.
By the way, it isn't a good ideal to sell the covered call on the falling stock, because it will make you hestiate to sell your stock. I had the same bad experience as yours. When CSCO was in 70-75 range, I sold 5000s at 71 and 20 contracts of FEB@75 CALL on my core holding. When I finally decide to sell those 2000s, the price was 58. What a pain. Anyway, I hope we can learn the lesson from each other. Sometime, you just need to bite the bullet and sell your lovely stock.
Jim S. |
