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To: Marq Spencer who wrote (113505)	3/30/1999 10:22:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

Marq, A very good strategy, which I have employed in the past. However, a few points: 1. Legging into a spread position is essentially equivalent to market timing with options. I have been burnt (once rather severly) trying to do this so many times that these days if I believe that the spread will be profitable by expiration, I set it up outright, considering the 1.125 as an expense. 2. Don't ignore the time value of money in your calculations. You have to discount the $5 ultimate gain as well, though it will probably be more than offset by the difference in LT and ST taxes. 3. More importantly, don't ignore risk. What if the equity ends below 45 at expiration? Bird in the hand etc. -BGR.