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

To: Curtis Brown who wrote (15886)	8/8/1998 1:27:00 PM
From: Nasdaq100	Read Replies (2) \| Respond to of 77400

RE: I have aug 100 calls at a very high 3 3/4 I also have a contract of the aug 100 calls, unfortunately bought at 3 3/4 aswell. If I had waited one day I might have been able to get 3 contracts, how frustrating. When I reevauluate this, august options was not the best idea for me considering the things going on currently. Hope for the best though with Cisco.

To: Curtis Brown who wrote (15886)	8/9/1998 6:01:00 AM
From: J. P.	Respond to of 77400

< I have aug 100 calls at a very high 3 3/4 and I have not enjoyed the moves lately> I'm in the Oct 100's and have a small profit so far. Well, since we are trying to pick a bottom here we can expect some volatility. I usually buy options on a strong stock off the Nasdaq 200 day moving average, which we hit on Tuesday's selloff. Sometimes the big stocks move smartly off the average, and sometimes they retest. I think of all the leadership stocks, CSCO is right now uniquely positioned in that they are providing the growth and revenues and a positive forward looking statement to provide a 'safe haven' for large institutional investors. And there are no ancillary issues with CSCO at the moment like DOJ investigations, accounting irregularities, or inventory/demand/capacity issues, etc. As far as options, I never try to play one month out, and I never buy a position when the Nasdaq is correcting. If you play too close in, you get erosion of time value which will equal any appreciation in the underlying stock. If you buy them 2 or 3 months out, you pay a little extra up front for the time premium, but you enjoy the underlying appreciation without the erosion. Bottom line, it's all conversation unless CSCO makes an upward move. But I think there's a lot of liquidity out there, and once the buying begins again, and the shorts cover, few stocks are as well positioned as CSCO to attract institutional money.