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To: JGoren who wrote (14555)	9/4/1998 12:43:00 AM
From: Clarksterh	Read Replies (1) \| Respond to of 152472

JG - OT Writing covered calls has traditionally been used with a stock that moves little While it might be true that this is done, in theory this shouldn't buy you much because, counterintuitively, to first order options are not priced based whether people think the stock is going to go up or down, but are instead priced based on volatility. Thus if a stock isn't moving much it might be true that you are risking less by writing a covered call, but you are also making less because the calls are worth less. Clark PS I realize that that explanation is pretty confusing, but put another way, if you tell me the value of a call, the current value of the stock, the interest rate, the time to expiration, and the strike price, I can tell you pretty accurately what all of the other options on that stock are selling for. PPS Note that I am not claiming that money can't be made on options, but it requires being able to predict price movement which I, at least, am unable to do over the short term.