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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Richard Kerns who wrote (4879)	12/11/1997 5:53:00 PM
From: Big Dog	Respond to of 95453

Depends on your desired holding period for the stock. But generally you want to write calls when the stock is up higher than what you paid.. You can choose in the money calls to hedge against decline -- and likely have the stocked called from you at expiration -- or out of the money calls which are all premium and may be less likely to be called...even if they are called you pocket extra coins. There are different reasons to write calls. I intend to embark on a call writing program in 1998 as an income vehicle. You can make good money selling someone something that decays in value every day. (Of course there are downsides to this too.) But if you generally are willing to hold the stock through thick and thin, you can supplement your income buy writing calls. I will use FGII for this since the premiums are so fat.