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To: Steve 667 who wrote (29865)	8/22/2000 10:26:25 PM
From: dwayanu	Respond to of 35685

Hey Steve: May you make your million soon so you can join us in stress-free peace and harmony! <g> 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! Well.. It's pretty real cash IMO, and it could be spent, but it probably shouldn't be, so that you have wriggling room if you need to roll out. Voltaire has pointed this out in the past. 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? :-) Don't know, just comes naturally I guess. I'd have to ask my grandfather Goldman about that, or maybe one of my wife's Sachs uncles. They always seem to have that kind of thing well arranged in advance. (that was a joke, I hope) 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! Don't need to predict the future. That's the main point of writing ATM rather than ITM or OTM calls. Premium percent is max at ATM, and drops as the stock price moves in either the ITM or OTM direction, plus time decay is always working. Thus a move in either direction sets up a profitable condition, excepting the sharp rises we've discussed. Good luck! - Dwayanu