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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: pride who wrote (1833)	10/26/1998 6:03:00 PM
From: Greg Jung	Read Replies (1) \| Respond to of 15132

You can't generate much premium on truly "dead money" stocks, but you can manage your way to hold a volatile stock at positive cash flow through a reasonable increase in share price while being short the calls.

To: pride who wrote (1833)	10/26/1998 8:57:00 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 15132

Strikes out of the Money so you sell your strike out of the money far enough that the chances of the stock reaching that price are pretty slim and now you get a return on your money instead of it just sitting there Strikes far out of the money usually yield low premiums for the seller. The risk reward on this type of transaction is not attractive to me. If you are going to get your stock called away you may as well be compensated for it by obtaining a greater premium otherwise you just earn nickels and dimes.