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To: Amit Patel who wrote (56058)	5/25/1998 8:48:00 AM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 186894

Amit, However, if you are called, you don't necessarily have to give your stock up. You can roll it over to a farther date... I'm not sure where you heard this, but the CBOE web site has the 'rules' for trading stock and index options. the following is copied from their 'Risks for Option Writers': An assigned writer may not receive notice of the assignment until one or more days after the assignment has been made by OCC. Once an exercise has been assigned to a writer, the writer may no longer close out the assigned position in a closing purchase transaction, whether or not he has received notice of the assignment. As you can see, once the 'word' been given, you are pinned. You must deliver the stocks. Ben A.

To: Amit Patel who wrote (56058)	5/25/1998 5:20:00 PM
From: Erwin	Read Replies (1) \| Respond to of 186894

Amit, <<Yeah, Writing covered call does seem like a good idea at times. However, if you are called, you don't necessarily have to give your stock up. You can roll it over to a farther date and buy more time for a higher strike price (this way you can postpone paying capital gains taxes too!).>> ======== I agree, there are many ways to play options. I try to keep mine simple - buying puts with a target or selling calls with a target. Before I buy a put I decide that I am willing to lose about 80% of the cost of the put and my target is a least 100% of the put. When selling calls I only sell above my basis and at a strike that I would sell the stock at or, in other words, my target for the stock when I bought it. I recommend always being willing to part with the stock if you are called. If you can not do that I would suggest avoiding selling calls altogether. Please understand this is based on my experience and opinion. There are many ways to play calls. Case in point: I bought AT&T at $39. When I bought it I intended to hold it long but had a target in mind of about 35% to 40% gain (wishful thinking). Some time passed since the purchase and Calls with a strike of $55 were selling for 5 3/4. The price of $55 was in the ballpark of my target so I sold a couple. That drove my basis in the stock down to $33 1/4. AT&T took off and went to $67 and then started to drop. I was called when the price was $60 and I gave up the stock. I ended up with the strike price of $55 plus the premium of $5 3/4 or I sold the stock for $60 3/4. Cool with me because I ended up with $5 3/4 more than my target. Had I rolled it forward my basis would have increased and I would be fighting the future potential of the stock. When I bought it at $39 I could see (in my dreams) $50 or $55. With the stock sitting at $60 and it's high of $67 the risk VS benefit goes up. However, it is like you say rolling forward has its upsides and downsides. For me I like to keep the play simple - Calls are the right for someone to grab my stock and Puts are the right for me to sell someone else's stock. If you find yourself in the position to play covered calls using the rules I outlined here you can't lose. If you do not go into the game with a commitment to part with the stock at the strike price you are open to disappointments and anxieties that this old boy don't need. ---- Opinions are like what? Erwin