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: Joe Jayne who wrote (11107)	6/29/1999 12:55:00 PM
From: Herm	Read Replies (3) of 14162

CFN I received an email today from a lurker who asked me about CFN. It's a cheap stock that has a recognizable chart pattern that spells quick profits. It is speculative since CFN is not expected to earn a profit this year. But, it does have a 20% growth rate. There is an attraction by some for cheap stocks. NYSE: (CFN : $4 1/4) $199 million Market Cap at June 29, 1999 Loss Expected for 1999; Financial Services SubIndustry priced at 17.6X PE We have the second leg to a double-bottom chart pattern when the chart is set to daily. When set to weekly it is the third bottom for the stock. A technical rebound or dead cat bounce should be expected. And, the stock is up and moving today! So, it is under way folks. The ride may only last to $6.00. But, it may be worth the ride. iqc.com The RSI and OBV is very low for CFN. CCing at the current $4.25 the 5s JULY @ 7/16s would yield a 10% return if not called out. Not bad for three weeks time. There is more upside to $5.50 than downside because of the traders that will milk this weak stock. It's a toy for the market basically. They buy 1,000 shares and write 10 CCs.

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