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To: Clappy who wrote (29351)	8/17/2000 7:55:39 PM
From: Dutch	Read Replies (1) \| Respond to of 35685

Clappy, I too experienced this, but not to the extent of getting cut in half. As in any venture it is important to spread the risk. I've been writing on 3 or 4 issues and taking a month off if the market falls. I've been fortunate that my stock s have recovered. I don't spend my premiums until 4/15. All premiums less stock erosion I put into a separate account and invest in QQQ on down and ugly days. Ex. Bought VTSS for 90 wrote 90's and lowered cost basis to 81 several months ago. Then wrote 80's and lower again, she dropped to $56 and bought more, but didn't write. Waited and wrote 80's 2 more times always out of the money getting $3-5 each time. This month with stock now at 80 I may finally get called, but new cost basis is $66. I will also have my $10/share loss as I will not buy these back for 30 days and I have my long position so if she runs I got her. This is how I've done it on PMCS, SSTI, CMRC and GMST. I'll take the difference in cost basis,tax loss and cc premiums and move that to the separate account. On 4/15 pay taxes and take all profits for myself or shall I say my wife. Hope that helps, Dutch

To: Clappy who wrote (29351)	8/17/2000 8:14:45 PM
From: pinhi	Read Replies (2) \| Respond to of 35685

I'm wit chu clappy. I still don't understand the part that you don't understand. Maybe we can start our own thread. Thread for dummies. I would only include myself in that group, however. Pinhi

To: Clappy who wrote (29351)	8/17/2000 8:21:47 PM
From: Voltaire	Respond to of 35685

Hi Clapster, the key is TIME. First of all you must remember that the good stocks for many many years have always corrected but headed higher. If you are concerned about getting your equity back quickly, you will be disappointed. People must remember - the NUMBER ONE REASON FOR WRITING CALLS TO ME IS - downside protection not income, the income is a bonus for those that need it. It is a two step forward one step back game and you must be able to play it. Let's say that EXTR is at $45 and you are trying to get your equity back. You write the $45's and let's say the time capsule dictates that the market is turning. IF THERE IS A SUDDEN INCREASE IN A STOCK - that means the time value is relatively moot and the sudden surge in the intrinsic value has boosted your portfolio. ( people seem to feel that a sudden increase in the price of a stock with good time value left is bad. Nothing could be farther from the truth. If one is sitting with equitable time value left and a stock even when up $100,000 in value in one day, they are still going to make about $30,000 from just the increase in the intrinsic value, NOT BAD). If you had say, 10 contracts. You would begin to buy your contracts back slowly with the appreciative intrinsic value and at the same time as expiration draws near you roll out to the next month AT THE MONEY ( this keeps playing the casino at a minimum ). Now you can see why it is two steps forward and one step back because we never know exactly when the turn could reverse but the beauty is we can always write the calls again. ALSO REMEMBER, we only have to get to the point on our recovery to where we are made whole not to where we started. ( I have talked to a lot of people who forget this part of the equation). Once back to where we are made whole, if one wishes to be naked on the stock once more, they just keep squeezing the strike price higher every month until they will not be called. Also one must remember, you are giving a worse case scenario and for those that did not cover- THE ALTERNATIVE SUCKS, just ask those that went through this debacle and wish they had covered.. To answer you more concisely - it is a controlled systematic repurchase and resale game. I have done it many times as Uncle Frank, Jill and Dealer can attest. Hell, for those that just want an immediate amount of money and couldn't care less about the time, just write leaps or long term calls if available. Volts

To: Clappy who wrote (29351)	8/17/2000 8:42:32 PM
From: Voltaire	Read Replies (4) \| Respond to of 35685

Clappy, I just got a call from Bebo and he let me know that he and the rest of the Beano's had been down at the old home place in Colombia for the last few months because Bo's health is failing and would be back in the states in a few days. That will give us an opportunity to see how Bebo and Bobo have handled the debacle in the markets. He even mentioned something about getting into a more volatile stock that pays better premiums. Maybe we can see how they would handled those volatile situations and also Margin. Something must have gotten into his liquor. BTW - they were staying at the Bogota Bungling Bungalows. V