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

To: Frank Ellis Morris who wrote (52843)	5/11/2001 9:12:56 AM
From: willcousa	Respond to of 77400

I set targets for each stock. Whenever the premiums become fat for a call that will get me my target price for a stock I write it as close out in time as possible. This will generally be at least 6 months out. Then I wait around for the premium to decline and buy the call back. I have written on amat, nvls, dpmi, klac multiple times since I started in earnest in June. I have all but dpmi outstanding now and am looking to write on dpmi again. I also write on tyco, tho not a tech. I have averaged about $10 on the sale and $2 on the buy back. So far every buy back has been at too high a price - I could have done better. Things are hairier now as prospects are turning better for the sector and I would really like to keep amat and nvls for longer term. This is a tug and pull in my head as I also tend to like the bird in the hand idea - that as long as I get my price and a fat premium - so what. I think the call writing will help me in my tendency to get greedy when a stock is moving up through my target. Hope this helps.