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To: Clappy who wrote (5283)	2/27/2000 9:07:00 AM
From: DepyDog	Read Replies (1) \| Respond to of 35685

Voltaire, my question too, is how do you know what strike price to set? I guess my situation would fit your 3rd individual scenario. When I talked to my broker about covered calls he didn't seem to think too much of them.(Not that ah evah pay him any attn.hahaha) Please take our hands and keep walkin us thru this. There are some great questions by Alias and Clappy. thank you for your time. best regards, Dep

To: Clappy who wrote (5283)	2/27/2000 10:04:00 AM
From: Voltaire	Read Replies (1) \| Respond to of 35685

Hi Clapster, see my post to dep. You are right on, it depends on what one needs. I suggest people weigh their on situations but I try to get them to say cover half of their shares for the good life even if it is at the money and let the other ride. Another big mistake people make is not removing some money out of the market periodically. In an IRA just let it ride or systematically write calls. The compounding is almost automatic in and IRA and is dramatic. That shows one how safe CC writing is because it is about the only Option play the Houses will allow in an IRA. Just think of the IRA money sitting out there that goes up and down with the market ( there are not many QCOM's out there) and they end up with a loss or maybe a gain of 15% but could have made say 365%! V

To: Clappy who wrote (5283)	2/27/2000 6:24:00 PM
From: Dr. David Gleitman	Respond to of 35685

Re: CC My gol to sell CC was used to generate extra monthly income. Having held on to AOL (until the TXX merger announcement) I sold CC about a week before options expiration. Having held 11 K shares (Yes, margin is a wonderful thing) and selling cc OTM for 1.5 points generated about 15 K per month. Not too bad. Stocks with higher volatility present an unusual dilema, There have been time that I sold CC as far out of the money as possible about a week before options expiration, only to have them go into the money. My mistake in January was getting taken out on these calls. For February, I simply rolled them into march. For example, I sold the Feb 230 CC for JNPR. As options expiration was fast approaching, about 3:30 pm friday afternoon, I rolled them into the March 270's and was able to extract an aditional 7 point for the rolling. I bought back these calls during the week, during the "correction" (or shit hitting the fan (aka SHF) phase of the market), which might have been a mistake even though I bought them back at a substantially lower price then what I got for them. Perhaps V is right in advising not to buy them back. Time will tell. My best to all on the thread (BTW, I'll have what everyone else is drinking on the porch)... David