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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: STEVE who wrote (40633)	3/1/2000 10:45:00 PM
From: Danny	Respond to of 45548

Stev, COMS will be at 80 and above before the D-day. This is a conservative estimate as 40PALM * 1.5 + 20 COMS = 80. There is no way PALM is going to go below 40. Not on a deal like this, unless of course we see a 1500 pts correction on NASDAQ:)

To: STEVE who wrote (40633)	3/1/2000 11:42:00 PM
From: Alski	Read Replies (1) \| Respond to of 45548

Steve, If you've been in 10 months and you think COMS is going to spike and then fall back that would be a perfect scenario to sell covered calls. Depending on the exact date you bought, either Aprils or Julys, (Mays would be perfect but COMS isn't on that cycle). You get to take some cash off the table right away. If COMS is below the strike at expiry then you get to keep the cash. You'll pay short term on the proceeds from the calls but you'll get to keep your COMS. If it's above the strike you'll sell your COMS at the strike and get to take long term cap gains. Tax treatment for exercised covered calls is to reduce your COMS basis by the proceeds from the calls, but the holding period is when you bought COMS in the first place, so you get long term cap gains treatment on both your COMS and the calls. FWIW...Alski