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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (28670)	10/10/1999 10:30:00 AM
From: Jimbo	Read Replies (2) \| Respond to of 77400

First of all my overall objective is to keep CSCO in my portfolio. Knowing that helps me pick the strike price for my options. Needless to say there are for the most part out-of-the-money. I have Oct 75s right now. Sold them about 3 weeks ago. I also bought CSCO shares down when they were 67 and immediately sold the OCT 67.5s. These were purely for me to get the premium. This strategy is somewhat effective, although I have been caught in CSCOs runnup earlier this year when I had sold the calls. I got a little uneasy and bought them back (at a loss). On hindsight I shouldn't have since the stock did pullback. Since CSCO reports in early Nov I am going to wait this month to sell some Novs. I will wait for CSCOs typical runnup before earnings. One play I am employing are buy-writes where you buy the stock and immediately sell the in-the-money calls. I have done it this month on QCOM and PMCS. PMCS is a bit of a problem this month. I bought the stock at 103 and sold the 100s for 6 3/8. As you can see the stock is at 89 1/2. I am debating whether to buy the 100s back (1 13/16) and immedialtely sell the 95s (3+) this week or alternatively just let them expire and turn around and sell the 100s again. PMCS reports this week so that is clouding the decision. I usually let the options expire and sell the next months. I am curious about your experience with QCOM were you selling them during QCOMs recent dip to 153 ? Remember to calculate commissions and short-term gains that are taxable. I get hit with all these but still find them a conservative play and thus worthwhile. Good luck.