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To: Voltaire who wrote (6211)	3/6/2000 11:15:00 AM
From: hroark2000	Read Replies (1) of 35685

Voltaire: I was having this same discussion with a friend while playing golf this weekend regarding writing calls as a source of income. He asked me what happens if you buy a stock for $90 and write and ATM call and get a premium of $10. Subsequently the stock tanks to $50. He said you can't write an ATM at $50 the next month because you would lose money if the stock runs back up. I thought one would write an ATM at $50, and if the stock started to run up just buy your call back and roll it over by selling at a higher strike price. Is this correct. Thanks in advance. I'm a little dense but trying to learn.

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