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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Ghassan I. Ghandour who wrote (22835)	6/22/1998 11:33:00 AM
From: Paul Fiondella	Respond to of 42771

This strategy of selling covered Calls has been advocated here often What you said was that you sold covered calls on the 12.5's and not on the 10's for between 5/8 and 3/4. Now I think it is important to understand Ghassan that there are a lot of people who read this thread who might not understand the risk of selling the 10's vs the 12.5's when the stock makes such a dramatic move up. Any pointers you can provide them with from your experience might be useful. ========================= NOVL just broke out of its expiration compression slumber to 12 15/16ths.

To: Ghassan I. Ghandour who wrote (22835)	6/22/1998 11:56:00 AM
From: Spartex	Read Replies (1) \| Respond to of 42771

Ghassan: While many NOVL owners in 1997 could have made a tidy sum selling covered calls at the 10 strike for quite a few months, I don't think that strategy would be a good one in 1998, as eventually one will have to depart with their shares, or buy the calls back at a higher price. Nonetheless, I trade with Schwab too, and didn't realize they let you hold onto the shares when the stock is even up to 1/2 into the money. Thats interesting news, and gives you that added protection, as in the June 12.5 calls. Regards, QuadK