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To: Poet who wrote (246)	12/28/1999 12:08:00 PM
From: edamo	Respond to of 8096

poet....crumbs communicate with paul(pal), he can give you added insight on scraping the crumbs. you have capacity in your portfolio with margin or cash. why let it sit fallow, when you can "scrape" 2%-8% per month with low risk put sales in the very issues that you already own. sort of a reverse margin situation, they pay you and you collect interest! accumulate enough 'crumbs" and go long common or leap calls, or take it off the table. it's a multi year strategy that really kicks in during year 3.......if prudent it will work in up or down markets. while you are "scraping", your portfolio is hopefully growing..and is becoming enhanced... examples of december positions...both set at a volatile moment sold 20 rdw-md (brcm jan220) on 12/2 with common at 200. prem=35.625 sold 5 rdz-mt (brcm jan200) on 12/15 with common at 197 prem=22 both sold on volatile dips in the underlying selling off for a half day in concert with an "end of the world interest rate fed hike oh my god" scenario sold 8 uqd-mt(jdsu jan200) on 12/21 with common at 260 prem=5.75 just those three positions brought in to cash 86.85k against an exposure of 670k of assignments. if correct about a 13% return for 7 weeks....cost to close today is about 15k...so 87k-15k=72k, 670k+72k/670k=10.75% for one month x 12=129% per annum return. crumbs come in all shapes and sizes.....but eventually they add up...good months and bad months, not always a "win", but on average something.