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To: invictus who wrote (15327)	4/19/2000 11:26:00 PM
From: arthur pritchard	Read Replies (1) \| Respond to of 35685

ej7; RE 13% call gain vs 50% stock loss: The probability of that happening is extremely low, on major issues. This is what keeps the game going. But technically, many do not realize that there is absolutely NO guarantee, when they write calls, because there IS the possibility of the stock tanking and staying there. In other words, thanks for talking about this. However, I would retire on qcom calls in a second. Do not ask for GUARANTEES in life, in general. btw where are the dogs tonight???

To: invictus who wrote (15327)	4/19/2000 11:34:00 PM
From: RR	Read Replies (1) \| Respond to of 35685

Heck fire Boy! I been telling ya and u have not listened at all! Buy calls for maximum appreciation. Go for it Dude. Lately has been perfect time to load up, but then again, how many times have I told you that lately? And, after all, you didn't buy SQUAT now did ya.... weenie. Collar this, spread that.... been there, done that.... quit being so conservative! Hey let's get back in to beans, sugar, and currencies and make some real money what say? Da bulls are coming. Watch that JDSU. CREE showing good support. Rick

To: invictus who wrote (15327)	4/20/2000 7:57:00 AM
From: Clappy	Read Replies (2) \| Respond to of 35685

ej7, you wrote: devil's advocate: What if the stock absolutely tanks?... You are not making money if the stock drops 50% in value and you collected 13% on your calls...at that point you can hold it until it comes back or sell it...writing calls way out of the money won't net you much premium unless you go on many months...writing calls at the money after a drop just locks in a loss if it runs up... solution?...what about some added insurance by buying way out of the money puts...you may lose a couple of percent but if the stock crashes, you will pick up some of the hit on the puts...this is called a "collar" Thanks. I'll look into it. GSTRF may not be a great example, but most of the Gorilla Candidates should eventually bounce back. Also, should the stock that I chose to write calls on, tanks, I could simply keep it as a LTB&H. Then as I wait for it to come back, I could cover a different gorilla. (This is all being done in my IRA account, so taxes are not an issue.) I'm diversified, so a hit on any single stock should not destroy me. Again, I'm considering this "interest earning vehicle" as one of my stocks. Hopefully it will earn an average of 7% on a monthly basis. Even if it averages out to 1% per month, I'm still compounding it and overall, it will pay more than a safe Dow stock. Each month, I'll chose a gorilla candidate that is currently paying the highest ATM premiums one month out. If I use TA correctly, I can make educated guesses as to when the stock is close to a bottom. I would prefer to have the stock called from me each month, than have it drop in price. Voltaire and others, please chime in if I'm missing anything... I'm still learning. -StudentClappy Disclaimer: To any Porch newbies reading this post: I'm an options newbie, myself. Please understand this. I don't want you to think I know what I'm talking about.