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To: Poet who wrote (4665)	3/12/2000 9:19:00 AM
From: Jill	Respond to of 8096

It seems to me he's doing it on a portion of his holdings, a portion where he buys a stock with momentum and only for the percentage gain he will get either from the premium or the premium plus being called away. It obviously allows one to write more contracts than selling puts, as there is no margin capacity used up. I really see his point now--it takes looking at it from a very different perspective than what leads us to invest in the first place (to accrue wealth by buying and owning stock). Think about it, if you and I had sold all our QCOM calls as he suggested either Dec 31 or Jan 3rd when the market re-opened, in spite of the tax hit we'd be way ahead of where we are now...we exercised a bunch, stock retreated 70 points. And we could have used that cash elsewhere. But we often talked about safety, about wanting to establish a large "core" position...it gives us a sense of safety but I'm not sure if the safety is illusory. However, the April 150s I sold on Friday afternoon make me nervous. So obviously this strategy is hard for me to embrace.