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

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To: Robert Graham who wrote (1281)3/17/1997 9:42:00 PM
From: B. Anderson   of 14162
 
I appreciate your contribution to this thread! What do you think about the following: During the week of March 10, ROST hit an all time high at 28 1/4 and then retraced to 25 for a difference of 3 1/4.
The amount of the pulldown from a high helps to define further upside potential. This pulldown, or coil, is added to the old high to measure the upside target. That would suggest a top of 31 1/4. Sound reasonable?

B. Anderson
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