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

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To: Herm who wrote (12140)	1/4/2000 9:51:00 AM
From: Jeffry K. Smith	Read Replies (1) of 14162

Herm, thanks very much for your answer. I understand all you wrote except parts of one paragraph: "The RSI measures peak extremes of overbrought conditions and oversold. Every stock has their own values for RSI. The length of time it takes the BBs to be tagged from one end to the other is a function of the float turnover." What do you mean by "tagged"? By float turnover I presume you mean the mount of time it takes all shares in the float to be traded? How is this amount of time represented? "In other words, more trades being traded on a daily basis relative to the number of shares. I think of it as a car on the high way. Those in the express lane are turnover over float at a higher rate than those on the outer lanes." No questions on that portion! "That helps you gauge the time factor in writing PUTs, selling CALLs, or knowing when to run the clock on time expiration situations." How does the float turnover help me gauge the time factor? I'm not clear on what you mean here about running the clock either, though I presume you mean holding to expiry... Thanks again, Jeff Smith

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