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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001600.0%Jan 16 9:30 AM EST

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To: Glenn D. Rudolph who wrote (10737)11/23/1997 3:30:00 PM
From: Chris Anderson  Read Replies (3) of 45548
 
Since everyone is trying to clarify everyone else, I'll jump in too!
:-)) If Carmine is long the stock, and the stock is volitale, it may fall from $70 to $(fill in worst case scenario here) I'd rather have the $5 of call money in my pocket when it falls. If it's a great stock and you plan on being in a few years and riding out the bumps, why not try and pocket a little call money along the way? This decision really depends on your investing style. Also, if I have 5 or 6 very volitale stocks in my portfolio and write calls on the bunch and only 1 or 2 fall, the call money can really help out. I understand all of the implications about capping your potential gains, though, really hurts to see one fly off when you have a call written on it! I understand puts and I understand "naked" only as it relates to calls, so what is a "synthetic naked put"???
Chris
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