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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 81.56

-1.9%

2:27 PM EST

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To: RetiredNow who wrote (67909)	5/18/2005 10:18:46 AM
From: GVTucker	Read Replies (1) of 77400

mindmeld, RE: Uncovered options are riskier, which means they carry a premium to covered calls. Isn't that right? No, it isn't right. A call option is dependent on the volatility of the underlying stock, the time to maturity, and the risk free rate of interest. It makes no difference whether or not the call is covered or uncovered.

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