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To: SPSEIFERT who wrote (5971)	1/26/2001 10:02:22 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 10934

>> What is wrong in buying all of the ntap you can afford and sell out of the money 30-60-90 day covered calls. There is absolutely nothing wrong with that strategy, which I believe is called buy-write. It's a variation on the covered call strategy, which retired folks like me use to generate cash without liquidating core positions. Of course, it's best to buy on a dip and then write the calls on a spike if you are able to time it. If not, the worst thing that can happen, should the stock fall, is that you have a lower cost basis than you would have had if you had just bought the common. Note, If you look at the returns, I think you'll find that you can maximize income generation by writing 30 day duration calls each month rather than selling 60 or 90 day calls. Covered calls work best in down or choppy markets. I haven't covered my ntap holdings yet this month because I feel it has explosive upside potential at these levels. Regards, uf