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To: Wesson72 who wrote (1669)	1/2/1998 1:01:00 PM
From: smolejv@gmx.net	Respond to of 11051

Wes(?): We are small change in this market. Writing covered calls starts making sense I guess above MY horizon at least. In any case it's (supposed to be) donbe different from what I can afford, namely a) own some stock and b) want to make some additional "Pizza money" (where's Steve?) with it. The correct way is to regard the whole transaction (buying underlyings and selling covered calls) as ONE investment, with clearly defined (well as clear as it can get) goals re a) maximum profit expected and b) maximum downward insurance. re out-of-money calls: the "scare" of the excercise is minimal, but so is the downward risk insurance. Re me: I don't know enough about it or (maybe more concise) I know enough about it to be able to stand by the first part of the sentence.