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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (49136)	2/20/2001 1:44:51 PM
From: chic_hearne	Read Replies (1) \| Respond to of 77400

Mucho, I'm not selling naked calls, only covered calls. This is how I interpret the premiums. The former kinky-gogo stocks are still totally capable of making huge rallies at any given point of time. Therefore, I think only the guys with a steel gut and a couple bottles of Pepto Bismal would even think about selling naked calls. The call buyers obviously think the stock will go up. The mania isn't dead, they haven't learned yet. From the covered call writers perspective (me), I don't know WTF is going to happen, but those call premiums are too damn lucrative to pass up. If I sell the $15 call for $3 and the stock runs to $50, do I really care? I made over 20% in two months, but of course I left something on the table. If nothing happens or it goes down, I write again and knock another $3 off my purchase price. It can only be pure greed that would stop someone from writing calls in this situation IMHO (they want 500% in a few months, not 10-20% every month or two). Greed hasn't been erased from this market and call premiums reflect that. chic