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Strategies & Market Trends : AIM Questions and Answers -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (168)	7/13/2001 2:04:12 PM
From: labestul	Read Replies (1) \| Respond to of 221

Hi Tom, I don't really understand your answer. You wrote: We don't want to be selling calls with an under-funded cash reserve. The reason is that it's better to have sold the shares to fund the cash reserve than it is to collect the premium and be caught short of cash if the market turns against us without fulfilling the contract. It seems to me that this statement, although accurate, is irrelevant. Selling the option should only increase total cash available. The option would have a strike price of one's next sell price which is not equal to the current price or we would just have sold the shares anyway. If there were not enough cash to make the next buy after selling the option there would be even less cash for the next buy if the option had not been sold??? What, if anything, am I missing here? Thanks, Barry