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To: puzzlecraft who wrote (17916)	5/10/2000 4:28:00 AM
From: joseph w renfrow	Read Replies (1) \| Respond to of 35685

Well...I dont know how that lady handled it, but I am very much underwater at present. Bought the first ELON cc at 88 in March..Liked that so did it again at expiration..Now I'm in at 98 ...Then Greenweasel did his dog and pony show....the rest is history!! ugh.....

To: puzzlecraft who wrote (17916)	5/10/2000 5:25:00 AM
From: Dealer	Read Replies (1) \| Respond to of 35685

Resent your question to Voltaire! Maybe he will answer it....later. I think he is playing in a golf tournament.....and not on the board but maybe when he gets through. Have a great day. love, dealer

To: puzzlecraft who wrote (17916)	5/10/2000 7:54:00 AM
From: Percival 917	Respond to of 35685

Morning John, The covered call strategy is designed to do 2 things. One is to help cushion the downside risk to a certain degree and the second is to use your vehicle to generate income to use to relieve one's stress in playing the casino. In the example you described, there is a definite loss, but one that can be made up with over time. One can keep writing calls each month and can recover the loss over time. You have to remember that everyone has to do their due diligence on a stock. Most stocks are well off their highs, many as much as Eschelon is. If you are in a stock that you believe has the fundamentals for a long term hold then the CC strategy is part of an overall strategy going forward. It is NOT designed to protect against an overall drop like we had of 40%. There are much better experts out there on what to do in that scenario. But if you have decided to be in a stock for what ever reason, why not help cover a bit to the downside?? Just a few thoughts this AM, Joel

To: puzzlecraft who wrote (17916)	5/10/2000 8:24:00 AM
From: Voltaire	Read Replies (2) \| Respond to of 35685

Hi John, I am glad you ask your question because it shows what being covered in a stock can do in regards to not only providing income but more importantly protecting one better on a decline. With her $40,000 and using about $2,600 in margin, we purchased 500 shares of Elon at around $85. She has pulled out $8,000 to live on over that period. By being covered and by buying back the calls as they lost their intrinsic value and writing ATM calls along with writing calls on top of calls with even farther out premium as the stock declined, we have added another 500 shares. We now sit with 1,000 shares as opposed to the 500 and slightly over $23,000 in the account and holding 10 contracts on the May 45's. I have instructed her not to pull out but 10% of the net value for the next month. We can still jump out and write further out calls and increase her number of shares and leverage as I expect Elon to move quite rapidly when news comes. The mistake I see people making on covered calls is not buying back when there is no longer any intrinsic value left. With just time value left, the writer is no longer covered except for time erosion. Thanks again for your question, Voltaire