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Technology Stocks : PMC-Sierra (PMCS) - moderated -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (160)	12/2/2000 1:10:10 PM
From: SJS	Read Replies (1) \| Respond to of 469

Tech/Howard, I did the same thing, essentially. I sold a total of about 30 or so points of calls throughout this year, at "opportune" times. If you watch the implied volatility of PMCS's options, you can see that there were better times/good times to sell calls. Into earnings events, for example, or after strong runs technically. Sure....30 points doesn't fully mitigate the kind of drop we've had, but this stock is in my IRA and that's probably the best place it could be right now, considering I was (and certainly am now !!!) taking a LT view regarding this company. 30 points is however, as they say in the options biz: "someone else's money". Steve PS: ST and MT calls are very out of vogue right now, so selling calls on PMCS makes no real sense as there is less implied volatility that there used to be. The puts are getting more juice lately, as you can imagine. LOL. The time for adopting a call writing will come again though, if you're waiting for such an event to re-occur. Patience is appropriate.

To: techanalyst1 who wrote (160)	12/3/2000 11:24:32 AM
From: Howard R. Hansen	Read Replies (1) \| Respond to of 469

To: techanalyst1 Thanks for the reply. Your answer confirmed my suspicions that you didn't have a fool proof method to keep from having a high growth high momentum called away when one sells calls on a high growth high momentum stock. When the stock would get either overbought or break support I'd sell calls. If it broke support I'd buy puts. If the stock fell alot I'd "unhedge" the stock, not wishing to have my shares called from me. Didn't you mean to say "if the stock rose alot I'd "unhedge" the stock" instead of "if the stock fell alot I'd "unhedge" the stock"?