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To: Dr. Id who wrote (3475)	4/2/1998 1:08:00 PM
From: Greg Jung	Respond to of 93625

Jeff re: selling calls. If you wish to do this and hold onto the shares you should investigate what kinds of roll-out strategies can be employed. For instance, suppose you write May60 calls now, you get lots of money but come may the stock sells for $70. and you have regrets. Well you can buy your 60 calls (at say $11) and sell June 60s (at, say, $13). You book a loss up front but your carying a bigger gain. Just don't spend the money you collect in calls, on further margin, unless you're willing to release the shares. Sometimes a price swing can be used for better rollout, ie. buy on a market/stock dip and sell after price rise. However this leaves you in a heavy loss position for a while, and you should always recover the short position. The high volatility premium makes the rollout possible (and even allows for roll up to a better strike) so conflicting with the "do it while safe" advice is this secondary requirement. Greg