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To: Dr. David Gleitman who wrote (35552)	12/17/1999 4:10:00 AM
From: Yaacov	Read Replies (1) \| Respond to of 41369

""I purchased 1000 shares of Dell at 44 3/4 late afternoon and proceed immediately to sell the December 45 calls at 7/16""" Dr. Gleitman, Maybe I didn't understand, but how can you proceed to buy 1000 shares of Dell, tie up 44, 770 USD and then sell the Dec. call for 7/16! Where is the "tahles!" or to put is more clearly, where is the meat? ggg I do that differently when I want to sell covered call; first I see what Jan. calls are worth! Lets say on Dell stirke USD 48 Jan. calls are USD 2.50 ! Then I buy the stock and I sell the call! If the stock goes I have eraned 4 dollars on the marign and 2.5 on the sales of the call! That means pocketing 6.5 which is not bad! If the stock goes to upto 46, he who bought the call will not excercise the option, so I still can sell and make a profit, or keep the stock and the 2.5 on they paid me for the call! If the stock goes to 42, I keep the stock, the 2.5 I pocketed from selling the call will reduce my cost of the stock to 41! I never buy puts, I sell covered calls only! You will can't loose! If you need more info, send me an e-mail and I tell you more! Kind regards, Yaacov