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To: JustInTime who wrote (23533)	1/5/2001 9:20:40 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Let's say you bought WGRD at 13 with a mental target of 15-16 in the short-term. Once the stock reaches a5 the call options for February or March would have a time premium built into the cost. If you sell the call options ("covered" by your shares) you keep all of the premium in your pocket. The February calls sell for about $2. So you sell calls, make another $2 and see if WGRD is over 15 by mid-February. If it is, you make two points profit on the stock and two points on the options and your stock is sold at 15, no matter where WGRD actually trades. If WGRD drops below 15 then you keep your stock and still keep the two bucks for the options you sold. If you are willing to sell a stock for a certain price (limited upside) covered calls are a good way to make extra cash. WGRD may run higher so I am not selling calls yet. And when the stock is 15 - if that is soon - the Feb 15 calls will sell for more than just $2, maybe $3-4.