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

To: Jimbo who wrote (28671)	10/10/1999 11:01:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 77400

>> I am curious about your experience with QCOM were you selling them during QCOMs recent dip to 153 ? No, my error was earlier this year. I sold August cc's for 4/sh. in late July when qcom was in the mid 150s. The stock dipped for a time and I could have closed the position for 5/8, but I got greedy and decided to wait for expiry. Q began to rally in the final week and I bought the calls back for a huge loss. That was a good decision as Q continued to run. I decided that the upward bias of Q was too large to sell cc's, so I've just held the common since. Thanks for the insights into your strategy. uf

To: Jimbo who wrote (28671)	10/12/1999 9:08:00 AM
From: Dr. David Gleitman	Read Replies (1) \| Respond to of 77400

I've been using a similar strategy for my positions. I usually sell covered calls about 2.5 weeks before options expiration just out of the money. I use the schwab charts to see where the maximum interest is (max volume) and sell the calls at the next higher level. This seems to work to pick up some additional income. Where there is heavy activity, I usually find that the options will expire right below that level. The problem is that I did'nt follow my philosophy when it came to AOL. I sold the oct 120's, then found that the stock shot up 24 points placing it at 123 and change with strong volume after yhoo's earnings. I compromised my trading philosophy and bought back half of my calls paying a high premium (and wiping out my option profits for the month) and sold the 130's. Should be interesting to see what happens. The problem with CSCO is that there is not much volatility and not much value in the higher valuations. Now, Ebay, that's a different story altogether... David