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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: uel_Dave who wrote (3617)	2/13/2000 1:31:00 PM
From: Voltaire	Read Replies (2) \| Respond to of 35685

Hi dave, First of all, I am still fascinated why anyone with what they feel to be considerable dollars would not have at least half covered, not only for hedge purposes but for income as well. I was talking to a Doctor the other day and he told me he had about $800,000 and was concerned about where the market was headed, da a da a da. As we talked he mentioned his three kids, their college education, the fact that even his wife has to work, cost of equipment to doctor etc. not to mention the stress, stress and more stress. I said, let me ask you something, would 30 or 40 thousand dollars extra a month help you at all? He looked at me as if I was half crazy and said, hell, 4,000 bucks would be a god send a month. so, I said why don't you give yourself almost ten times that much. He said he would love to but where and how. Just write a call on half your shares and let the other have ride in the casino. He could not believe it was possible until I showed him the March slightly out of the money calls paying a little over 10 percent. I am meeting him Tuesday to set it up. Practically everyone on this thread has a VEHICLE ( equity in some call writable stock ) and they just sit there and let it go up and down all year long when if they would take a portion of that VEHICLE and write for income in dollars that would drastically change their lives. Ex. - a friend of mine has a daughter that he had given $10,000 to and we had bought some stock with it. Well, it turns out she needed a little money the other day and wanted to sell her stock because of this need. Instead we simply wrote a call for march on the stock and picked her up $1,200 between now and the third week of March. So she might get called away, so what, we will buy another and do the same and this young lady will not only get it this next month but the following as well if she desires. How many young people are out there and older people for that matter that could use $1,200 extra bucks a month. This attitude can literally change people's lives because most of our lives are on a monthly basis. So, I would first of all cover half of my position and then do what you want with the rest. Even if you are covered and do not get called out which BTW does not occur but maybe 5 % of the time, you will still make a third appreciation should your stock rise. INCOME, INCOME, INCOME is what changes peoples lives, not holding on to a hopefully appreciative VEHICLE because you may need it when you retire, and hell if you keep playing the market you might not have it anyway and by covering you are technically short the market. I almost want to go around the country informing people of this but very few would believe it or for that matter understand it. The market is nothing more than a Casino, so change your life with half and gamble the other half but don't bet your future on all of it. It almost takes a fool with say a half million or so in the market and not have a portion covered. But it is not the hedging that changes lives, it is the unknown source of income for millions of people that do not understand the income opportunities. I have just seen stress kill too many people. I think we can still see $155 to $160 by the meeting but no one knows that. THAT IS WHY I AM COVERED ON HALF MY SHARES. It gives me a great life, with practically no stress. Selah, V