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To: Dragon 1 who wrote (57918)	8/23/1999 3:23:00 PM
From: wlheatmoon	Respond to of 86076

dragon 1, the methods to my madness are as follows: 1. i buy solid companies that i really like. some are obviously expensively valued,,,but i know the risk...and i'm willing to take some of the risk,,,but see 2...-g- 2. i hedge much of my bets in this mad market by selling calls to capture the premium. the more volatile the stock,,,the more premiums i can capture...-g- 3. if my stock gets called away, i pocket the 5-8% premium/month. 4. if my stock tanks,,,i sulk,,,but i don't overload in any one company,,,so i don't get hammered too badly..(my goal is solid capital growth with capital preservation). i just hold or selling calls further out. hence, #1 is important. 5. i also buy values and i add to those on dips....i buy them with an outlook to sell in 1-3 years out and a defined target. not much option activity in that group. so,,,,yeah, i'm on the sideline,,,but i'm also playing with some pocket change. i can't pick a bottom and there is no top so i go for the ride when i can. i don't go overboard...so i'm comfortable, no matter what. i won't ever make a gajillion dollars in profits,,but i don't need it and i sleep better at night with my own method to this madness. good luck. mike