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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: manohar kanuri who wrote (23774)	12/15/1999 12:26:00 AM
From: Shakush	Respond to of 25960

manohar, I don't think the topic is a candidate for Koestler's SPCDH (Society for the Prevention of Cruelty to Dead Horses) just yet. Perhaps someone pointed it out earlier but a covered call writer has no reason to short the underlying stock. If he he thought the stock price was going to fall, he would simply sell the stock and could therefore no longer write covered calls. A naked call writer would feel compelled to buy the stock if it rose. A put writer is a bull and if wrong his only choice is to sell; his holdings to cut losses, and short to cover the put exposure.

To: manohar kanuri who wrote (23774)	12/22/1999 10:07:00 PM
From: jbn3	Read Replies (3) \| Respond to of 25960

re: CYMI Convertible Bonds Manohar, Perhaps you or some of the other more knowledgeable posters could answer a few questions for me. Situation: I bought some of the CYMI 3% convertible bonds last Spring. (My first purchase of convertible bonds, so know very little about them, but I liked Cymer.) CYMI has now exceeded the conversion price. Q1. What are the pros and cons of converting? Q2. What are the procedures involved? (I could call my brokerage and ask, but I thought it might be of interest to the thread in general.) Q3. If I then sell shares which were acquired through conversion, how is my cost-basis calculated? Q4. If I then sell the 'converted' shares, how is my holding period calculated? From the purchase of the bonds, or from the conversion date? Q5. As the stock price is now above the conversion price, if I believe that CYMI stock prices will continue to climb, what are the advantages to buying CYMI vs the bonds today? Would appreciate anyone's input on these issues. jbn3