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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: miklosh who wrote (23223)	10/26/1998 1:15:00 PM
From: Lost in New York	Read Replies (2) \| Respond to of 45548

. . . I am considering writing out of the money covered calls to lower my cost and my downside risk. Do you use options with coms? I do. I sold jan35 CCs @ 2 3/8 about a week ago. Only against a portion of my COMS position though. I'm using the options to enforce selling shares I bought back down around 24. I'll get over 13 pts a share (less commissions) or almost 40%. <G> I can never manage to pull the trigger at short term tops, I get too excited and greedy. Of course when I'm called (everyone knows COMS will be well over 35 in Jan <G>) I'll instruct my broker to sell higher priced shares (my average basis is around 36-38.) I'm thinking about selling a few Jan 40's today. We might get there by Jan 15 but I think I'll have an opportunity to buy them back even or at a gain between now and then. The good thing is that you can then worry about the stock going up too fast, which is not a bad worry to have. I can't stay on top of things to do "Wayne" style trading, although I've thought about trying it with stops etc. But I'm not there yet. So this is the next best thing for me. Dave

To: miklosh who wrote (23223)	10/26/1998 1:34:00 PM
From: joe	Respond to of 45548

>>Hi Joe, I am considering writing out of the money covered calls to lower my cost and my downside risk. Do you use options with coms?<< Don't use options...yet. I'm waiting for a more stable and bullish market COMS and market. I'm not an options expert, but lower your cost has always seemed like a very good strategy with COMS. I wonder, though, if lately, you may limit your upside. This seems to be a time when one might want to leave room for upside surprise. So, I'd have to think about covered calls at this moment. Other folks around here would be much more knowledgeable. joe