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To: Jimbo who wrote (105658)	3/1/1999 10:24:00 PM
From: HoyaBob	Respond to of 176387

Monitoring the price is critical. You can pre-determine the profit you want to make, say 15 - 20%, and set a "good 'til cancelled" order on a buy to close order. This helps in a decline, but may limit your profit. I suppose that buying in and out of the money calls are a relative thing. It's the strike price and the variance above it or below it which would motivate your sell decision. If you set your strike to insure a healthy profit to begin with, then you can just sigh as the stock runs away from you, yet you have limited your profit to say ... 20 or 25%. Provided you want to get called. That's why the time period and strike price decision are so critical. I try to keep these to 60 - 90 days and build in at least 15 - 20% profit should I get called. Now, maybe you don't want to be taxed, etc. Then, if it's a runaway situation, I roll up and out, as they say. That is, I buy the call early and raise my strike price. Your brokerage can do these "wraps" for you more efficiently. Although you still pay for two transactions, there is room for your broker to negotiate the net price, whether it's on the buy or sell side.