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To: Tony D. who wrote (10832)	2/6/1998 9:51:00 AM
From: Big Dog	Read Replies (3) \| Respond to of 95453

LT -- I have to differ. I think buying stocks to sell calls is a very GOOD thing to do. Naked calls are much too risky as you will be exposed to potentially higher and higher prices to buy the stock to deliver if you are called.

To: Tony D. who wrote (10832)	2/6/1998 10:50:00 AM
From: SJS	Read Replies (1) \| Respond to of 95453

Tony, I agree. I found that, with very specific objectivity, I can just buy stock that seem to be stalled (or with a very slight upward bias), and sell calls as a nice return strategy. I've returned 15%, on average, per month with this strategy. This IS the strategy for some portion of my portfolio. Some rules: 1) don't marry the stock. Stick with specific objectives. 2) Look for stocks that are not mega volatile. Sure you get much more premium, but greater chance for loss as the call may NOT protect you fully. PS: I've done 2 MDCO's buy/writes for Feb. 1) Bought stock at 16.25, and then when the stock was 16 7/8, I sold 17.5 calls for 1 3/8. 2) Bought stock at 17 15/16, and then when the stock was at 19, sold 20 calls for 5/8. Both return between 13-14% for about on average, 3 weeks of time, if I get called. Might I miss some upside? Sure. But maybe not. As the time value erodes, I can always buy them back. Let's watch them. It's how you learn. Regards,