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Non-Tech : The Critical Investing Workshop

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To: Clappy who wrote (29351)	8/17/2000 7:55:39 PM
From: Dutch	Read Replies (1) of 35685

Clappy, I too experienced this, but not to the extent of getting cut in half. As in any venture it is important to spread the risk. I've been writing on 3 or 4 issues and taking a month off if the market falls. I've been fortunate that my stock s have recovered. I don't spend my premiums until 4/15. All premiums less stock erosion I put into a separate account and invest in QQQ on down and ugly days. Ex. Bought VTSS for 90 wrote 90's and lowered cost basis to 81 several months ago. Then wrote 80's and lower again, she dropped to $56 and bought more, but didn't write. Waited and wrote 80's 2 more times always out of the money getting $3-5 each time. This month with stock now at 80 I may finally get called, but new cost basis is $66. I will also have my $10/share loss as I will not buy these back for 30 days and I have my long position so if she runs I got her. This is how I've done it on PMCS, SSTI, CMRC and GMST. I'll take the difference in cost basis,tax loss and cc premiums and move that to the separate account. On 4/15 pay taxes and take all profits for myself or shall I say my wife. Hope that helps, Dutch

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