Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (24923)	6/25/1999 8:51:00 AM
From: randmiser	Read Replies (3) \| Respond to of 74651

"By your response you seem to endorse the concept that it is not worth the risk as the MSFT will rise rapidly and result in your calls working against you. " How could MSFT rise if rapidly work against calls? Thanks

To: John F. Dowd who wrote (24923)	6/25/1999 9:16:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

JFD, I have hearing an Abbey Cohen interview on Bloomberg TV. She seems pretty bullish to me---unlike the neutral impression i got from the CNBC interview a couple of days ago.

To: John F. Dowd who wrote (24923)	6/25/1999 9:26:00 AM
From: t2	Read Replies (1) \| Respond to of 74651

You must therefore think that the market is going to move upward rather rapidly. The fact that the price is so "low: is that the volatility portion of same has diminished and therefore the market feels that there will not be any explosive upward movement in the stock. If the market is right then selling out of the money calls nets one a premium as they expire worthless. By your response you seem to endorse the concept that it is not worth the risk as the MSFT will rise rapidly and result in your calls working against This is your response to taxman but i would like to point out that due to the low volatility in MSFT options, it may be worth taking an aggressive call buying position. If the volatility was high, one would get good money by selling covered calls in the process of hedging their long bets in the stock. My reasoning is that no one really knows where the market will go. If the market players knew, it would already be there! If people really felt that the market is going down, it should be there this instant. To me low volatility or cheap options is a good buying opportunity and high volatility is a good time to sell covered calls or even go short calls. However, there is no rule and the market could fool you. After several days of selloffs and the volatility remaining low one would expect that the volatility increases or the market will go up. I think i am starting to get confused after putting my "logic" into words. Therefore, i need to stop here.

To: John F. Dowd who wrote (24923)	6/25/1999 9:54:00 AM
From: taxman	Respond to of 74651

[is] there is a tax timing thing to consider when cashing out[?] yes. go to publication cited dealing with estimated tax. let me know if you have any questions after browsing it. ftp.fedworld.gov