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To: freeus who wrote (62776)	9/1/1998 9:35:00 AM
From: Greg Jung	Respond to of 176387

Freeus, the mixture of covered calls and margin holdings is not a good one. To sell an underlying stock position the call must be first bought - and the value of the call decreases slower than the stock. Your hands are tied, so to speak, when you don't have naked call holding privileges. On paper and over the radio it sounds fine, buy stock like Zitl, sell calls and set a stop loss. But you can't execute the stop loss without buying back the call. Also trying to "trade" options by shorting calls and waiting to buy back: you don't get the movement in options that you do with the stock and although you put up more capital the risk is not so drastic as options. Having the ability to write options is good if you can have it without using it. But if you go to Las Vegas you usualling wind up dropping some dollars into the slots, and if you start to "study" the situation you often end up contributing substantially more to the Nevada coffers. Greg