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

To: Mo Chips who wrote (19723)	12/9/1998 6:39:00 AM
From: Dave	Read Replies (1) \| Respond to of 77400

Off Topic Mo: You have already written the calls. No sense wondering now. My belief (and it is not on TA) that the market will do two things, go up or go down. We have seen an incredible rally from the lows. Cisco, Lu, and Intel are up 60+% off of their lows. I have heard that the market could go down this December b/c it has made such a fantastic run. On the other hand, I have heard that it will keep running since we have momentum. dave

To: Mo Chips who wrote (19723)	12/9/1998 7:08:00 AM
From: Danny Boy	Read Replies (3) \| Respond to of 77400

Sounds like a Wade Cook idea. It puts you in the position of assuming the up trend has no gas left. The proximity to expiration may prove to be a shrewd move but what if the stock goes to say 90? Now your out and waiting for the inevitable pullback. The stock continues to rise or simply stay above your gains. You then buy it back out of frustration only to see it descend below your options strike. Do you write another covered call, buy a call, buy more stock, or hold tight? If the call expires worthless you've grabbed a couple of points in gains. You could have sold your shares outright and purchased calls then wait to see where things settle since your bet is that the stock will fall or not move any higher. My opinion about options is that they are more of an insurance expense as opposed to a profit builder. They mess with your psychology about the market vis a vis a timing strategy. Remember, few people effectively are able to time the market as it moves according to your greed or fear. I like to keep it simple. Buy fear and sell greed. You will hardly ever get a bottom or a top, but you WILL make money. Good Luck on your play and don't get played! DGB