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To: rudedog who wrote (129658)	5/28/1999 4:04:00 PM
From: BGR	Respond to of 176387

Rudedog, Completely agreed. Even when backed by cash, one needs to be mentally prepared to accept delivery when the price drops, just as one needs to be mentally prepared to part with the equity when selling covered calls - otherwise we are back to the speculation mode. Now, I speculate a lot myself - in fact I am presently holding short term options in a bunch of internet stocks - but I have only risked money that I can afford to lose and I also know exactly the maximum amount that I can lose. OTOH, going long on margin based on the assumption that the equity price will not drop (or selling puts), or selling covered calls on the assumption that the equity price will not rise completely beats the purpose behind such option strategies, which is lowering downside risk by giving up some upside. -BGR.