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To: JBird77777 who wrote (106041)	3/2/1999 11:12:00 AM
From: HoyaBob	Respond to of 176387

Re Averaging: Thanks for your input. IMHO "averaging" helps one to justify a position over time by either balancing out extremes in price, where there is underlying confidence in the company long term, or in rectifying entry pricing mistakes, usually when one entered too high. Thus, the averaging technique for shares or options helps the investor to correct initial pricing errors, market swings, etc. It may provide more control over the ultimate selling point. But I'm not suggesting this is a mechanical process. I'd only buy more shares or calls if I could make a profit, I've made a mistake (or the market has gg), and I want to stay committed to a position. Real averaging works under the theory of the bell curve, and requires fairly disciplined investments over defined time periods, whether the stock or option is up or down. I think of my approach more as a hedge. With covered calls, I guess this is a hedge on a hedge. Food for thought?