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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Guy Gordon who wrote (4156)	1/9/2000 7:39:00 PM
From: MileHigh	Respond to of 24042

Guy, I think you get it fine. Just sell the calls once it has made a crazy parabolic run, sell the OTM calls to make sure you don't get called, then buy 'em back once it falls half way down the channel... Of course this is market timing and we all know that's another discussion! <gg> MileHigh

To: Guy Gordon who wrote (4156)	1/9/2000 9:42:00 PM
From: cthruu	Read Replies (1) \| Respond to of 24042

My comment was in response to Rich1's message. As I understand, he had a problem because MM's played a game with his covered calls. All of us have been through those games more than once. I also agree with you that "trading" stocks like JDSU will build up large tax consequences. I am not selling my JDSU or QCOM, nor am I selling CC's on them, because they are in my long term hold portfolio. I do believe that a decision to sell should not be necessarily held up just because of its tax consequences. There are other ways of offsetting taxes and if you have to pay some tax on your earnings, so be it. If it is a prudent decision, it should be implemented regardless of tax consequences. Everyone has a different trading strategy. I personally do not like writing covered calls because they limit the upside and if the stock tanks, you are stuck with it. They certainly have a place as a strategic play, when written at the top of the channel- provided one is going to buy them back at a profit. They also have a place if you are trying to generate a paper loss on gains of the stock - short and cover at a higher price because you are still holding the stock. Your point of not giving up 500% gain is well taken. I am in the same boat. :-) Ragards: GP