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

To: James A. Shankland who wrote (22017)	2/4/1999 8:28:00 PM
From: Mike Gordon	Respond to of 77397

Ref: Tax consequences and repurchase considerations. Your points are well taken. Anyone who embarks in a Covered Call writing strategy must have definite goals in mind. If income producing is the goal, you are automatically subject to a maximum of 39.8% tax or lower if you fall into that bracket. However, any gain on the call should be offset by a loss on the stock if the stock is called away. When the market is tentative, covered calls are an excellent way to reduce your basis. Tax consequences must always be a consideration. There are many if's which directly relate to your goals, tax status, understanding of the overall market, and risk tolerance. I try and keep it simple by writing monthly calls. This is not as easy as it might appear. Thanks for your input, Mike Gordon