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To: AnnieK who wrote (6575)	3/26/1998 2:22:00 PM
From: Bipin Prasad	Respond to of 19080

Annie, In general, CC is mildly bearish strategy because you sell them if you think it'll stay under that price. However if you want to be called out, it's not a bad strategy. If you want to hold it longer and have some extra change in your margin account, selling naked puts would be very bullish strategy and cheaper than just CC. There're many more ways to use options, but try this one or practice them on paper first with TA. Hope it helps. regards, BPP(Bipin's partner)

To: AnnieK who wrote (6575)	3/26/1998 2:34:00 PM
From: DanZ	Read Replies (1) \| Respond to of 19080

Annie, When you say 100 calls, do you mean 100 shares of stock or 100 contracts? Each option contract represents 100 shares of stock, so 100 contracts represents 10,000 shares of stock. Big difference. Using your example, if you wrote 100 June 35 calls at 1 1/16, you would receive $10,650.00 less the commission. Writing covered calls can be a good strategy in a volatile stock as a way to produce income on a stock that you plan to hold anyway. Most options expire worthless. You can also buy the option back for a profit if the stock goes down and then write it again if it rallies. Or look at it this way: If you write the June calls, it's kind of like selling your stock at 36 1/16 today even though it's trading at 31 1/4. Good luck, Dan