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To: freeus who wrote (135494)	7/4/1999 1:03:00 PM
From: PMS Witch	Read Replies (1) \| Respond to of 176387

Option strategy -- Dell or others If you are buying calls, you're paying for the opportunity you may enjoy. The question should be "Am I getting my money's worth?" If I'm interpreting your post accurately, you're trying to build a portfolio from a small initial investment, using the leverage of options. Rule number one: you can't afford a loss. If you're sitting on appreciated options, you must decide if the further appreciation is worth the risk involved in holding them further. Successful option traders often avoid squeezing the last penny, because this practice often leads to taking a round trip! Once you have paid-up shares, you can withstand the market fluctuations and enjoy the appreciation of your stock long-term. For what it's worth, I began with buying calls. I was fortunate with this and began accumulating shares. I then wrote covered calls. As my luck continued, I began writing naked puts. By this time my portfolio was large enough to support stock purchases on margin. Eventually I was able to sell shares and eliminate margin. This path may not suit everyone, but it was the one I followed. Hope this helps, PW. P.S. There are few option traders among the world's wealthy, but there are some buy-and-hold types. Choose the path which leads to where you want to go.

To: freeus who wrote (135494)	7/4/1999 1:23:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

freeus, re: selling your leaps My recommendation would be, don't. Hold on to all of your leaps if you can, and exercise them. Then hold on to the stock. This is plain old buy and hold and is the optimum tax strategy, as Chuzz has often pointed out. If you do this you can postpone any taxes. You in effect will be receiving an interest free loan from the gov't. Consequently you will end up with more capital -- not less -- working for you. If you believe that it takes money to make money, you want as much capital growing for you as possible. As a libertarian, you may also derive some additional utility from depriving the gov't of revenue at a time when it sorely needs to go on a diet! I realize this doesn't help you with your financing problem, but I would try to find some alternative to selling highly appreciated assets. (e.g, have you considered buying the shares on margin at exercise, or selling leaps (calls) next time around?) Regards, Geoff