How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: Mike Scott who wrote (11966)	12/1/1999 8:38:00 AM
From: Casaubon	of 14162

I purchased 200 shares of PILT at 22 3/16 last week based on a chart that showed upper BB tag and high RSI. I then sold 2 ARR 17.5C for 9 1/8. The stock has droped to 17 and the calls I bought are worth approximately 4 3/4. You do mean the calls you sold, right? You are indeed correct. The weekly chart implies the stock will cycle down to the $10-$14. iqc.com The weekly 3 candle pattern is reffered to as an evening star reversal. The sixty minute chart implies a technical bounce is due but, it should be limited to about $19. The stochastics and DMI suggest the stock is now downtrending. The OBV continues to decline which supports more downside and the weekly and daily RSI have reached their limit supporting more downside. This stock looks like it has quite a bit of volatility. edit: Be careful about costs. I can't justify the expense to use options on only two hundred shares at my broker.

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