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To: dwayanu who wrote (29690)	8/19/2000 11:08:29 PM
From: Dealer	Respond to of 35685

dwayanu, Glad you cleared up the margin question. I could not find margin mentioned in your example.... Most of us on the porch have learned our lesson on margin and we've had our Margin Anonymous group here on the porch since the spring. Most have completed the 12 step program. People just assume that we on the porch are day traders, heavily margined and have learned nothing over the past year. I think we have learned one heck of a lot and things are gonna be different this time around. Thanks again for all of your posts. You have certainly been a valuable addition to the porch. Thanks again, dealie

To: dwayanu who wrote (29690)	8/21/2000 1:44:05 AM
From: Steve 667	Read Replies (1) \| Respond to of 35685

Hi dwayanu, Thanks for your thorough response. Points well taken and appreciate you taking the time. I guess that the concept of KISS was bulldozed over by a freight train on this thread, huh! (g) I only used the word margin to make a point. I didn't mean to imply that we should include margin into the strategy discussion. I should have made it more clear. I was trying to make the point that using portfolio value as you do, it can show a profit where there really is none. As pointed out in your response, if you can't put it in the bank, it ain't doesn't count. I know what you are trying to say, but it can be misleading especially to newer players. Cash one gets from selling a covered call isn't spendable til it expires. This is much different from the spendable fun kinda cash most of us have come to know and love! Also in all your examples, you assume that the strike price of the last rolled over option just happens to be the same as the stock price on the date of expiration of that option. (the best of all possible worlds) It makes the numbers come out better for sure, I just want to know how you get the stock price to do that? :-) I had not read the previous discussion as to the strategy, and it is rather important. You see, it isn't for me yet, since I haven't made my million yet. AFTER I do, then perhaps this will be a more attractive strategy. This strategy seems that it would be very very time consuming. Is that true? If you used it on a stock like CREE (my recent favorite) or Rambus, you could go through several rollouts before lunch! You mentioned that this strategy is a clear winner during a falling or sideways market. You also mentioned that you don't want to get caught writing covered calls at the bottom of the market. Ah, so you see there, I will have another problem. I have trouble determining if the market is sideways, falling or a bottom until after it has already happened. But once it has already happened, I can spot any of them in a heartbeat. I have a very tremendous grasp of the obvious! I would very much like to know if anyone on this thread has successfully used this strategy on a single stock for 2 or more years and would be willing to post his track record in detail. Now that would really get my attention! (and respect). Thanks for taking the time to explain your strategy. You express yourself well. I'll stop by from time to time, but gotta go make my million for now. Thanks. Steve 667