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

To: manohar kanuri who wrote (20439)	1/7/1999 8:21:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 77397

For a leap that deep in the money, with even a year to expiry, it's very likely that the bid is just a dollar or two above the stock minus exercise. Using the info in a follow-up it looks like his about Y2K-$65 strike call is bid at about $45 and has about $6.50 of time premium. I'm not sure why a higher strike would be "cheaper"? Or do you mean just absolute dollars? Yes. I hesitated to use that word but did. In any event, another alternative is to write out-of-the-money calls (against your leaps) and hope they expire worthless rather than get called. You can always buy that higher strike if it does get called away and still come out ahead with a lower absolute dollar exposure. jmo fwiw.... That's another "option" (snort) but it assumes that he either has the stock to write against or has the privilege to create a spread. I don't currently have spread privileges myself but that's mostly because I've been too lazy to apply for it.