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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 73.65

+2.6%

1:50 PM EST

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To: Jerome who wrote (64359)	8/6/2003 10:10:34 AM
From: Elroy	Read Replies (1) of 77397

If the common was held through that same period of time it would also be at a loss. But with the covered call premium the loss is less. Sure, but the tradeoff is you limit your upside. In your scenario if at expiration in September CSCO stock is trading at $24, you haven't made $5.10 per share ($24-$18.90), you've only made $1.70 per share (($20-$18.90) + 60 cents). What you want is a guaranteed profit Not sure why you're saying that about me, but I'll certainly agree, it would be nice! I also would like a chocolate milkshake, a 3 week trip to Koh Samui, Thailand and couple of classic Orson Welles DVDs, but that has nothing to do with helping you understand options. Elroy

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