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To: Susan G who wrote (44297)	6/12/1999 12:05:00 PM
From: kha vu	Read Replies (1) \| Respond to of 120523

Hi, 1) When you are selling short and the stock going south. You must BUY TO COVER. This is to complete the transactions to get credit to your account. 2) When you are holding a stock like AOL today, and you want to protect your asset since AOL going south or might loose more than what you paid for AOL then you write an AOL option. (covered option). BTW, there is a very good website on options: options-inc.com

To: Susan G who wrote (44297)	6/12/1999 12:20:00 PM
From: Bald Eagle	Read Replies (1) \| Respond to of 120523

<<Do you know if it is possible to sell a stock short and then cover with shares you already hold in your account, >> I believe that's called "shorting against the box". Since you already own the shares, you don't have to buy them to deliver. Since shorting is the same as selling, if you think the price is going to go down, why not just sell your shares? Another strategy, if you want to keep your shares, and you think the price is going to go down would be to sell covered calls on the shares you own. That way, you can generate some cash and still keep your shares if the price drops. There's also time value to calls, so it can be like getting interest from your shares. Of course if the price rises, you will have your shares called away from you.