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Technology Stocks : Network Solutions (NSOL) -- Ignore unavailable to you. Want to Upgrade?

To: Caroline who wrote (1188)	6/5/1999 2:55:00 PM
From: Mike Gordon	Read Replies (1) \| Respond to of 1377

Caroline: My primary goal is preservation. Selling covered calls close in negates any upside appreciation resulting from a buy out. I was hoping for that buyout when I purchased at 66.25. It didn't happen. So at this point, I'm happy not to be in a net loss situation. If NSOL continues to fall, I'll buy back the 55's in favor of selling 50's until we see a permanent bottom. In essence, I've traded the upside potential for a small loss or gain. Again, if calls are played at the incredible daily spread points, you could recover all losses. Because NSOL demonstrates a downward trend, this is difficult to do. In any case, it's better than buying the stock at 66 (or higher) and hoping for a retracement.