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To: RocketMan who wrote (29977)	8/21/2000 2:24:51 PM
From: Mannie	Respond to of 35685

Rocket.. I have been writing CC for 6 months, so I am not a seasoned veteran, but I think I have caught on fairly well. It is really a fairly simple concept, but there are a lot of nuances to it. I have slowly moved up to where I am writing on close to 50% of my portfolio, that is how comfortable I am with it. I am no gambler either, I come from a LTB&H background of around 15 years. I use as simple as approach as possible. I only buy back and rewrite my calls when the stock had dropped, and the CC premium I received no longer offers any intrinsic value. You can keep up with this.....but this is also where the nuance comes is. Because if you chase it down too quickly, the stock can come back up and you sell out too low, or have to roll up. I try to never roll up, I let the stock get called out, I met my goal. Hope that helps, Scott

To: RocketMan who wrote (29977)	8/21/2000 2:29:59 PM
From: SE	Read Replies (1) \| Respond to of 35685

Simply put, you ended up losing $2000 on the stock (from $11,000 last purchase to the $9,000 call price) and you gained $1500 on the calls sold, so yes you are out $500. Interesting. I think a great deal would be different if you: 1. Roll up and out on the Sept 100 call (ie, buy back the Sept 100 and sell the Sept 110). 2. Buy back the OCT $110 call and sell the OCT $100 call and then possibly buy back the OCT $100 and sell the OCT $90 strike. 3. Roll up and out on the Nov 90 call (ie, buy back the Nov 90 and sell the Nov 100) As simple as people want to make it, I still think active management and a plan will put you in a much better position...something as I have described above. Otherwise, as you stated, you lost $500 on the stock. I would love to see the above example with real time prices. That is part of the reason for my paper portfolio that I will be following for a while. Gotta see how it all acts real time..... -SE