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To: Gregory who wrote (5625)	3/27/2000 2:32:00 PM
From: PAL	Read Replies (2) \| Respond to of 8096

I have made good money in selling CC on Dell, but at the present time will not again on Dell. QCOM was behaving like Dell after the first week of January. Then it rocketed in the last few days. Selling CC is only a tiny portion of my activities since the bulk is selling puts. Cisco is best managed company in the world, it never behaved like Dell. Therefore I do not plan to sell CC in CSCO. As a matter of fact I have a bunch of CSCO Jan01/50 calls which is free, courtesy of selling Optical Coating Labs puts which expired last February. CSCO is just steady like a turtle, will keep going up slowly. With the above reasoning, your CSCO May 67 1/2 call will almost certain cause you to lose that stock. Since it is currently DITM, the extrinsic value is not that rich, even though it has 8 more weeks to go. Compare that to QCOM April call which has a rich extrinsic value with only half the time to go. Of course QCOM is much more volatile than QCOM. CSCO is behaving differently from normal post split syndrome: the stock rises. If I want to keep the stock and if the 200 shares are my only CSCO, I would just close the position on market weakness which probably will happen next week after window dressing. In essence cost basis is increased by $ 8/share but will participate in the runup. Just look at CSCO shart. There are some stock that you want to stay away from selling CC. CSCO is one of them. Note: Not intended as an investment advice. Good Luck Paul

To: Gregory who wrote (5625)	3/28/2000 3:04:00 AM
From: PAL	Read Replies (1) \| Respond to of 8096

As a follow-up of my response to you that the extrinsic value of May 67 1/2 CSCO call is inexpensive, I would incline to buy that call. If I were at the other side of the coin (short on the call) and don't want to lose the stock, I would close my position. Assuming that those 200 shares are not on margin, they allow for selling naked puts to generate cash to buy back the CSCO CC. Right now JDSU Sep 105 put at around 16 is attractive. There is room to sell 2 contracts with enough cushion should the market goes south. Cash flow wise you should be fine: - you retain your 200 shares of CSCO - you keep your 200 x $ 7.25 = $ 1,450 original premium for selling May 67 1/2 call - by selling Sep 105/jdsu puts you generate 200 X $ 16 = $ 3,200 cash - with the above funds from the put you buy back your CC at 200 X $ 15 = $ 3,000, thus pocketing extra $ 100 - you declare to the taxman a short term loss and take a deduction of $ 3,000 - $ 1,450 = $ 1,550 from your CC on CSCO - you pray daily that jdsu will not fall below $ 105 by Sept 15 so that you can keep the premium, and that your csco will keep appreciating andn think what to do with that extra $ 1,450 you are keeping it is late, so good nite paul