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To: pinhi who wrote (29196)	8/16/2000 9:18:25 PM
From: techguerrilla	Read Replies (4) \| Respond to of 35685

You don't!!! I call that a "busted vehicle," Pinhi. Writing calls on a volatile stock to get the higher premiums is a precarious game. If it goes up, you get called out. Granted you get some of the move up with the premium. If it goes down and you fail to buy back and rewrite ("chasing it down"), you're guaranteed a vehicle that will erode: a "busted vehicle." Keeping the premiums in the account and not ever spending them helps you take that vehicle to the "repair shop" at times. My take on this is that you have to avoid volatility. It's a balancing act. Get a lower premium and more stability. There's no way in the world I would want to follow the market on a moment by moment basis to guard against the whimsical declines in tech stocks that may erode the value of a cc "vehicle." Boring! God, I hate to be bored. I am coming to the conclusion that the best cc vehicles are the tech "generals"--INTC, SUNW, ORCL, MSFT, and CSCO. They rarely take serious whacks and the premiums are reasonable. Seriously. How many people have kept their ELON vehicle out of the repair shop. Frankly, QCOM looks as stable as a rock right now. It might stay at 60 and offer reasonable premiums for the next year. Makes me sick. The bottom line is that you need to have a decent gauge on the downside. Rose pointing out the 200-day moving average sounds like a damn good idea. I haven't been hanging around much, even though I like so many of you, because the economic destruction I have encountered by the total dismantling of QCOM's market cap has made me have only a passing intellectual interest in the market at this point. Nice stopping by. Just my take, John

To: pinhi who wrote (29196)	8/16/2000 9:33:14 PM
From: Voltaire	Read Replies (4) \| Respond to of 35685

Yes, you write all the way down. The alternative sucks. Then after hitting the bottom as the Q has done, that is when you begin to start getting you equity back. In other words if Bebo keeps writing, he will eventually get more than his original investment. I realize it takes time but hell, that is the cheapest part of the deal and that is a hell of a lot better than going into a state of panic and going broke and especially with full margin. There is a way to handle that to but only one individual I know that did what I suggested about Margin and she still has her inventory in tact. When I think of the people that gave up their stock when they did not have to, it turns my stomach. LIKE I SAID, THERE IS NO SUCH THING AS A MARGIN CALL, all anyone had to do WAS WRITE LEAPS AND LAUGH I THE BROKER'S FACE. When the market turns AS IT IS ABOUT TO DO, you simply roll out and keep riding. At the height of the debacle I had about 12 people on full margin and got margin call after margin call but none lost their stock because we wrote leaps. Selah, V