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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Johndee who wrote (4445)9/5/1997 10:10:00 AM
From: Herm   of 14162
 
Johndee, CUNO just made a recent 52-week high and is testing that old high right now! Your thinking is ok except for one thing. May I suggest you pick up Nov. PUTS rather than September. According to Doug's float turnover CUNO comes in at 14.76% monthly float turnover which takes a whopping 147 days for 100% turnover of shares. That's a slow boat to China in price movements for a stock which such small liquidity. You may run out of time and not get enough pull back in the remaining time lefted. Buying the PUTS now would be cheap.
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