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

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To: wbpfta who wrote (11490)9/1/1999 10:57:00 AM
From: Herm  Read Replies (1) of 14162
 
Very good questions for CPWR! According to a WINs approach,
I would be in CCs out a few months at the money! Reason?
Looking at the weekly chart profile, the overall trend is
a falling RSI, level to declining OBV, narrowing upper and
lower BBs, level center moving average and trading volume
dropping off. In short, a cooling off the stock that is
approaching fair value. With a 33.27% growth rate and P/E at
25, there is no room for disappointment. The next earnings
release is about Oct. 21. 1999. What will propel CPWR until
then?

NASDAQ: (CPWR : $30 1/8) $10,570 million Market Cap at
September 1, 1999 Trades at a 45% Discount PE Multiple of
25.0 X, vs. the 45.6 X average multiple at which the
Software & Services SubIndustry is priced. Software &
Services SubIndustry up .10% / Technology Industry up .17%
Today.

iqc.com

Make some CC premies in the mean time and be ready to
protect your downside IF it happens. If it gaps upward, it
won't be for long and it won't happen until that earnings
release anyway. If it goes sideways, you still have the
CC money working in your account and decaying away to your
benefit. "A bird in hand, is better than two in the bush!"
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