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

To: Elroy who wrote (67915)	5/18/2005 11:25:20 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Yes, I was thinking that Cisco would sell a covered call and MS would by buying that covered call. But if MS is selling to Cisco, then it would be selling an uncovered call to Cisco. And when Cisco gives an employee a stock option, that is essentially a covered call. So if in your scenario, Cisco was BUYING from MS, then they would be buying an uncovered call from MS and giving it to the employee, which is different than if they were giving their typical covered call to the employee. So that difference between a covered and uncovered call was what I was referring to.