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To: Jim Hott who wrote (33083)	3/8/1998 5:07:00 PM
From: AlanH	Respond to of 176387

When you talk about "rolling" a call over, does that mean sell the Mar call at whatever price you can get, and then buying the Apr call (presumably at the same strike price)? Unless one has additional cash, this will result in a fewer number of shares (at the same strike price).... correct? Option rolling can occur horizontally or diagonally. Horizontal rolling occurs at the same strike price, later series (eg., Apr, May); diagonal occurs at a different strike and series. In the case of a diagonal roll the result is not necessarily fewer contracts, although # of contracts should not be the primary focus. The attempt is to maximize value and, correspondingly, minimize risk. As Mr Spaulding mentioned (#33082), the bulk of Mar options are overvalued. So, rolling permits you to sell overvalued contracts for (presumably) fairly or undervalued contracts. The sell and the buy orders should be submitted concurrently as a combined transaction. Occasionally, traders will sell a position, wait for underlying fluctuation, and establish a new position; technically speaking, such activity is separate from rolling. Keep in mind, a reduction in volatility may adversely affect profitability of such positions. Good luck.