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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.78+1.9%9:55 AM EST

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To: The Phoenix who wrote (41305)10/23/2000 12:27:57 PM
From: bambs  Read Replies (1) of 77400
 
it's not a mistake to calculate the option liability that a company has as it's stock goes up each year. If you are long term investor it would be foolish to ignore such things. if csco is carring an option liability of 40 billion its a concern. As an investor you expect a stock to go up at least 12-15% a year because of the risk. If the stock goes up that much the option expense would continue to balloon. CSCO option holders will be selling and pulling money out at some point. You can't just invest and count on these people not to sell while you own the stock. You must agree that these options put a collar on the stock.
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