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To: pinhi who wrote (29186)	8/16/2000 7:36:27 PM
From: Jill	Respond to of 35685

When QCOM went to 60? Wring my hands and weep! And learn a good lesson. I haven't done the buy-write, it makes sense to me, I'm seeing if I can get myself into the right psychological place. I think that's the big danger. I agree w/ you its such a volatile market. I'm operating from much more of a cash basis now, get in and get out on many trades.

To: pinhi who wrote (29186)	8/16/2000 8:35:15 PM
From: Voltaire	Read Replies (2) \| Respond to of 35685

Hi pinhi, good question. One must understand that we have been through a tremendous correction. You keep writing and writing every month and if you have to roll out to keep from getting called you simply do that by letting time be your weapon of choice in getting your equity back. If not down on your equity just let them call it. it is certainly OK to buy calls back in order to regain your equity but I would never by back because you feel the stock is going to rise. KG is right, let them call the damn thing. WHO WOULD HAVE BEEN BETTER OFF IN THIS MARKET, BEBO OR BOBO. Bebo of course because not only did he pick up his $27,000 bucks initially but also has probably average another $10,000 per month in addition for the last four months or an additional $40,000 for a total CC return of $67,000 on his initial investment of $200,000 and therefore a net loss of $40,000 as opposed to BOBO'S $107,000. Now what I would do at the LOW end of the channel such that QCOM is in now is apply a little margin and increase the return. BOBO on the other hand simply has a loss of approximately $107,000. If done right, it is almost the only way to go. There are three things that killed most people even though they had written calls. 1. Not buying back the calls when all intrinsic value was gone and rewriting. 2. Buying on full margin and therefore exacerbating the above. 3. Buying their calls back because they thought they were about to lose an opportunity. CAN'T BE BEAT IF DONE CORRECTLY. Only reason I quit posting about Beano's was because I could not get the above three critical areas over to most. V

To: pinhi who wrote (29186)	8/16/2000 9:30:38 PM
From: jc2020	Read Replies (3) \| Respond to of 35685

Hi Pinhi, I've only been writing cc for 3 months now and certainly agree with V I'd be way ahead if I'd started earlier. I have been called out several times but still better off overall than without doing cc. My best learning experience was buying ELON about 64 and writing the July 65's right after June expiry. Stock dropped, as you know, and I had several opportunities (when intrinsic value dropped and calls were at 3/16) to buy back and resell them again. Could have done that twice during that one month, but didn't, so I lost additional premium I could have received. At next write, after July 65s expired worthless, stock was at close to 35 so wrote the 35's for August. I could get exercised on Friday (stock has been between 33+ and 38+ last few days)or I may decide to buyback and re-write at a higher strike (roll up to say 45 or 50) and a few months out for a higher premium and wait for a dip to buy back and regain some of my equity, then write the closer in calls again and pick up more premium to catch up on equity. Also agree with Scott, nice to write on a few you know pretty well and getting started in IRA where taxes don't make a difference. I've done some in taxable account as well (40-50% of folio). Thanks Scott for the GMST idea, nice premium. Have been following it some and will buy some to sell cc on as well. How's my thinking on this V or anyone else? Don't tell me you're getting a headache again, <ggg> 2020