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To: Pescador7 who wrote (1035)	1/20/2000 9:40:00 AM
From: AmericanVoter	Read Replies (1) of 35685

Pescador7, I've been doing something similar (not with Q though)... I do not sell calls though as that requires identifying a possible top, which I can not... and I add some requirements when I do that... the most important is that the effective cost if assigned is at or close to a strong support level... and to explain the other factors I look at... let P be the premium/share to be collected on selling the desired put C be the current price of the underlying E be the effective cost of the underlying if assigned now, tied money to every $1000 collected on selling puts = (1000*E)/P tied money if the stock is bought to tied money if options are sold (T) = C/E if T < 1... I buy the underlying and if T > 1 and I am tying up less money than I collect if I sell puts... then I sell puts... I apply this to some stocks I follow, but somehow Q's premiums have not gotten to work in my favor yet, so, I just hold the underlying... examples of where the above is working are RAD and XRX (both are down in the dumps at this time) and it worked last year with CMGI when it dropped to the 80's and the Jan02 200 premium was 123/125 best regards amein

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