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To: Len who wrote (6301)	3/7/2000 9:31:00 AM
From: Voltaire	Read Replies (6) \| Respond to of 35685

Hi Len Yes, that is why I say, do not buy the calls back. Either write the same stock again or move to another. If the stock moves up substantially, you want to liquidate the stock before expiration or before being called in order to pick up that portion of the appreciation you would not otherwise get.

To: Len who wrote (6301)	3/7/2000 9:32:00 AM
From: candide-	Respond to of 35685

Hi Len, I am no expert, but I'll try and answer the QUIZ question.... If I'm off Volt can set us straight! It works out something like this: You wrote the CC to create cash based on the value of the equity at that time. Ok, you generate 10% for the month. That 10% really gives you 20% in leverage because of margin. You take that cash and live. At the expiry date say the equity has risen to exceed last months value, so you now have a new entry point on the equity regardless if you buy back the CC or purchase the equity. If then sell the CC at the time you buy the equity, once again you have created 10% for the month. You may be asking, "where did the extra cash come from the equity at a higher price?" It can come from margin (the house's money), it came from dry powder, it came from in part from the 10% you made last month (also the houses money) which you did not spend. I am only covering 1/2 my position, so if we get a run I can cost average the next purchase. Also remember, even with an ascending stock like Q the stock price does not appreciate every month. Some months up, some months down or flat. (Do we know that or what)? Another thing I'm doing with some success is buying very hot stocks that are paying great returns for CC. I buy then cover with no intention of holding the equity. An example is Rambus. I bought at say $250 and covered at 15% for 2 weeks. It heads up, I get called out, but I made a nice conservative profit (you know 15% in « a month). If the stock got hammered, I have some room to maneuver. I can even buy back the CC in a dip as long as I rewrite right away. Best regards, C-