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To: Sully- who wrote (29388)	8/17/2000 9:08:53 PM
From: pinhi	Read Replies (2) \| Respond to of 35685

But your not reducing your cost basis if your CONSUMING 100% of the options premium to live off of. Further more, haven't you INTERUPTED your income stream if you roll out and up? If I roll out and up say 6 months, what am I gonna live off of for 5 of those 6 months? What am I gonna pay the MONTHLY bills with? What am I missing here? Many thanks in advance Pinhi

To: Sully- who wrote (29388)	8/17/2000 10:18:57 PM
From: Clappy	Read Replies (2) \| Respond to of 35685

Thanks Tim, A few questions: 1) How do you buy back if you already used that money for your monthly income? You have to sell something else or hope you have dry powder. 2) In EXTR's case you may have to roll out for several months or longer. You still need monthly income. What do you do? I understand that you could diversify with several stocks, but many of the high volatile stocks went down and came back up high. How do you pay your monthly bills? You are still rolling out and out and out without gaining any income. I guess this method requires a lot of cash reserves or secure stocks backing them during the tough months. Keeping this money in a low risk low reward stock or CD would take away from the overall percentage of gains. In other words writing cc's on a safe stock that is not jumping up and down may only net you 3% per month on your cc. But then you don't need to keep your dry powder in a CD or money market as you play the cc game on the volatile stocks. No? -Clappy