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To: Voltaire who wrote (7122)	3/12/2000 8:51:00 PM
From: hroark2000	Read Replies (1) of 35685

Voltaire: I have one final question for you regarding writing calls. Suppose an investor were to buy a stock like ELON for $90, and he turns around and writes April 90 calls for $20. The stock drops and is worth around $50 at April expiration. If the investor were to turn around and write May 50's for say $15, he would be in a situation to lose money. If the stock rebounded to say $60 around May expiration would the investor buy back his calls and then re-write at a $60 strike price. I guess I am wondering would you still write at the money even if your ATM is below your cost basis. Thanks. -Mike

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