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To: alias who wrote (3771)	2/27/2000 8:38:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

Alias, You asked the question of Jill, but since we're twins, I'll throw in my two cents. <g> I would NOT write covered calls on a stock that has momentum behind it, as JDSU does now, unless I wouldn't mind it being called away. Also, I've personally had nuetral to bad luck writing cc's on my QCOM shares and have made a public plea for anyone here to kick me if I start thinking about doing it again. IMO, there are many other ways of making money in the market, and of using the equity of your long term holds as a vehicle which provides regular income, that do not involve the risk of being called away. Put selling is one of these strategies and there are others. OK, I'll shut up.

To: alias who wrote (3771)	2/27/2000 8:49:00 PM
From: Jill	Read Replies (2) \| Respond to of 8096

I would not write cc on a volatile gorilla, especially when it's in a consolidating phase as is QCOM. If someone does that they are perfectly comfortable losing their stock, doing a percentage deal, and they take the risk of writing the calls at a certain strike, which if called away would net a certian percentage gain. They figure it out on a numbers basis. Me, I have exactly as much QCOM as I want. I chose that amount through stock purchase and exercising calls. And I will be accumulating JDSU in March via exercising DIM calls. I am not comfortable writing cc on either of them. I do see the point, however, of buying a stock that's in a kind of flat trading range (say, MSFT under DOJ trial cloud) and writing OTM calls--if you want to do that with a piece of your portfolio. For cc strategy I would only pick stocks that look like they're not going anywhere soon--I noticed Voltaire bought 15,000 shares of Globalstar, and sold cc on it. He did that with a small portion of his portfolio. That makes sense. I prefer to sell puts, but that's because I don't buy on margin. So I've got this margin capacity and it allows ME to take advantage of the market knowingly. With a cc, I'm psychologically at a disadvantage, at least on my favorite gorillas, because I might be called away, and I have no control over it. I don't like my portfolio being at the mercy of the market like that. You have to know your own psyche.