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To: RocketMan who wrote (29544)	8/18/2000 6:15:38 PM
From: drenko	Read Replies (1) \| Respond to of 35685

Sideways or up. The trick in any investing is to pick good stocks or options. There is a downside to anything!! If the vehicle you are in stops paying the good premiums then move on. This is why I do not go many months out. I like to go month to month in fact. So if say SSTI stops paying good premiums or I feel the stock will go down for whatever reason I am gone. But look at GE....why is that stock paying 5%??? I have not figured out that one yet...but I will. Have a great weekend!! -Danny

To: RocketMan who wrote (29544)	8/19/2000 9:47:42 AM
From: im a survivor	Respond to of 35685

<<But if the market turns, eventually the stock will correct and that 5-10% monthly will lessen, due to declining call premiums>> Well, not necessarily. The point is simply to make X% on your dollar invested. elon at $60 and you collect $6 in premium is 10% elon tanks to $30....you can still write and collect $3, or 10% The actual % you earn will not change...you can still make your 5-10%, regardless of stock price. What is changing of course is the fact your vehicle has crashed. Sure it's still getting 10%, but 2 weeks ago that 10% was $6, now the same 10% is only $3. First of all....as Tom would say, this is exactly the reason why you stay covered. Look at his beano examples. Bottom line is if a stock is going down...well, it's going down. If you are writing cc's, you are at least getting something back. Still losing, yes, but to a much lesser degree, and it then allows you to get out even or with a profit much easier when the stock finally does turn around. If you bought elon at $70 and did nothing, you are sitting with a $70 cost basis. If you have been writing, and maybe even doing it multiple timesmonthly on the rises and dips, your cost basis could be $30 or $40 by now, simply due the the premiums you collected the last few months. Then, if and when the stock decides to go, you make the decision to let it get called, or roll up and out. So yes, you can still make your 5-10%, but as I said, it's when things go sour that you need to know what to do!! Have a great weekend keith@soundinglikeheknowswhathestalkingabout,butweallknowbetter.com

To: RocketMan who wrote (29544)	8/19/2000 9:51:50 AM
From: im a survivor	Respond to of 35685

<<OK, that works in a stock that is going sideways, as has been the case with many stocks for months. >> PS....it also works with stocks going upward. In fact, for a cc writer doing it just for the income, that is exactly what they want to happen...have the stock go up and get called away. If your writing a tad OTM, you are collecting a little less in premium, but you collect more when stock is called. Many cc writers do this in an up market. Keith@letsseewhatwearebuyingandwritingagainstnowanysuggestions??.com