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

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To: Dan Duchardt who wrote (11623)9/29/1999 5:49:00 PM
From: Herm  Read Replies (1) of 14162
 
Hi Dan and Lurkers out there!

As you know by now, ROST is up today to $20 1/4 +3/16s and
your 20s Oct are going @ bid 13/16 - ask 1 last 7/8s. The -
Volatility -- 20 Day: 35.5% Half Year: 31% which is low.
The time decay is kicking in Dan.

You would need to clear $20+1 1/4=$21.25 for a possible
B.E. on exercising the stock and CCing to lower your net
cost basis. Is it likely? Sure, with a market rally after
this oversold condition that is starting to worry people.

NASDAQ: (ROST : $20 1/4) $1,930 million Market Cap at
September 29, 1999 Ranks 547th in the Fortune 1,000 on
Revenue & 527th on Profit. Employs 20,100. Trades at a 43%
Discount PE Multiple of 12.1 X, vs. the 21.3 X average
multiple at which the Discount & Variety Stores SubIndustry
is priced. Discount & Variety Stores SubIndustry up .69% /
Retailers Industry down < .56> Today
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