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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jonathan Thomas who wrote (11114)	6/29/1999 7:34:00 PM
From: Herm	Read Replies (3) of 14162

NOVL Hi Ryan, I liked NOVL back when it was $9.00 and sleeping. I still like the stock which is undervalued and still has a 20% annual growth rate. I believe they will do a number on Windows-NT when the government puts the screws to the Microsoft monopoly. NASDAQ: (NOVL : $27) $9,425 million Market Cap at June 29, 1999 Ranks 734th in the Fortune 1,000 on Revenue & 517th on Profit. Employs 5,800. Trades at a 15% Discount PE Multiple of 54.0 X, vs. the 63.2 X average multiple at which the Networking SubIndustry is priced. NOVL WEEKLY CHART NOVL appears to be breaking to the up side with an unknown target price. A positive reaction to Mr. G's comments tomorrow could easily lift NOVL up to $28 or $30 before mass profit taking to the $22 lower price support level. iqc.com NOVL DAILY CHART Pretty much a similar up side potential to $28. iqc.com NOVL 30-MIN CHART You can see a top at maybe $28. iqc.com CONCLUSION Personally, I would prefer to hold the current CCs and take my chances to be called out. With this NOVL runaway, I would load up on long calls sideshows with the NOVL AUG 30s @ 1 1/8s expecting to cash them out at say 2+. If that proved to be a successful sideshow I would immediately buy the cheap PUTs to capture some pull back. The AUG 25s PUTs would be about 1 at that point of NOVL at a price of $28. I would happy with a 3/8s to 5/8s profit on the PUTs.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next