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

To: t2 who wrote (5587)	1/28/2000 8:28:00 PM
From: taxman	Read Replies (2) \| Respond to of 24042

if anything jdsu options are cheap. the premium you get for writing the option is not worth it. you don't get enough downside protection if the stock drops and if it goes up, it could go way over the strike price. i own yahoo common. with the stock at about 140 i wrote a 270 option. how could i lose? well a short time later the stock was at 500. for a six dollar premium i gave up 230 points. regards

To: t2 who wrote (5587)	1/28/2000 9:38:00 PM
From: AmericanVoter	Respond to of 24042

t2, if you are bullish on the stock, as I assume you are since you are long, then you are limiting your profit by writing covered calls when it is dropping... when a stock is falling, you don't want to write covered calls... you want to write puts... especially on stocks you are bullish on and don't mind getting assigned... you would write covered calls when the stock is at an all time high, then the premium would be high as well, and adds few points to the all time high you are selling at... best regards amein