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

To: kvkkc1 who wrote (55844)	10/7/2001 12:57:29 PM
From: Eric	Read Replies (1) \| Respond to of 77400

Well it looks like the war finally started. I'll hazard a guess that the markets jump big time tomorrow. It will be fun to watch.

To: kvkkc1 who wrote (55844)	10/7/2001 1:04:32 PM
From: Jerome	Respond to of 77400

>>> IBM and MSFT move up to $3 on a good day.(I'm talking about in the money strikes.)<<< Do the math first....A $3.00 move on IBM is a 3% move... a $1.00 move on CSCO os a 7 to 8 % move...an in the money option will move in step with the stock, so a five dollar in the money option on CSCO or IBM will play out about the same. But keep this in mind...CSCO has $15.00 of downside and IBM has $100.00. When you play with IBM you are playing with $10,000.00 bills. No big deal until you lose a couple of them...(gg) If you check back thirty days or sixty days you will see that CSCO will swing 6% a day before lunch on most days. Look at the number of option contracts traded on CSCO...they dwarf the contracts on IBM....there is a reason for that...and the reason is "implied volatility". Good luck with IBM and MSFT, I'll stick with CSCO....Jerome