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To: Dr. David Gleitman who wrote (10658)	4/3/2000 4:53:00 PM
From: Voltaire	Read Replies (2) \| Respond to of 35685

Hi Doc., your thinking is half right as far as I am concerned. 1. I would go Deep in Time with a higher strike rather than deep in the money . You will need the intrinsic value to allow you to purchase calls back when you feel market has turned around. KEY - do it gradually on the buy back. This way you are creating the cash that you need ( if that is your reason) and yet have an opportunity to bail yourself out on a turn around. V

To: Dr. David Gleitman who wrote (10658)	4/3/2000 4:54:00 PM
From: Jeffry K. Smith	Read Replies (1) \| Respond to of 35685

David, Same here. I am also considering selling the underlying (HGSI) - right now am on the phone to Schwab to figure out what % of sale price it will put back in my account - they just said 35% (grrr). I use the "buy stock, sell cc's" method to generate monthly income, and the only reason I would simply sell the stock is that I would have to sell the October calls to meet my margin call. This would totally trash my ROR on a fair amount of money. The other option is to take a $50K loss and see about making it up... I can't offer any better advice than to consider every angle, including your method of recouping any loss you might take by selling the underlying. In sympathy, Jeff Smith