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To: pinhi who wrote (29394)	8/17/2000 9:12:26 PM
From: Dutch	Read Replies (1) \| Respond to of 35685

Take a yearly net approach after taxes on 4/15. Pay cash for for your wish list purchases. Use mine to pay off mortgage, ought to be done in 5 years at 40 yrs old. Dutch

To: pinhi who wrote (29394)	8/17/2000 10:25:21 PM
From: Sully-	Read Replies (2) \| Respond to of 35685

pinhi, In my example I said you were using the original buy/write for income. If the stock tumbles so that the intrinsic value is gone, buy the CC's back & write again at the money. This second write lowers your cost basis. In the examples you & clappy discussed, like QCOM, there would have been 2 or 3 times in a month to uncover & re-cover the stock, lowering the cost basis further. If after covering, the underlying stock recovers & you are about to be called, you can roll up & out.You will take a ST loss on the last CC write, but your should still generate sufficient premium on the roll up to pay for the loss & provide some income if need be. Also you will still hold your original shares at a higher price. Besides, look at QCOM this yr. It ran a few times & you may have rolled up & out. However, it still turned back south, providing you the opportunity to uncover those CC's & re-cover at the money again, thus lowering your cost basis again, or providing you with your next months income.... albeit, you may not have a banner month for income when your vehicle gets a buzz cut. FWIW, when situations like this occur, there may be times when you may not by flying first class to the beach & drinking Dom.... but you should be able to meet your essential needs until you can work through this unusual correction that has jeopardized your vehicle..... & your future if you insist on consuming 100% - 100% of the time.... suggestion.... leave a little room for just exactly what happened this year..... better safe than..... OOF :-\| Tim