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: Herm who wrote (2059)	5/21/1997 8:47:00 AM
From: Herm	of 14162

HOW TO WRITE COVERED CALLS - A REAL CASE STUDY! ================================================================== Date: Tuesday, May 20, 1997 The stock: ROSS STORES (ROST) ROST announces excellent 1st. quarter results today. websmart.stocksmart.com:8810/ss-news/CX453819.html and the street rewarded the stock with a $1 (+3 1/2%)price increase. The stock: TECH DATA (TECD) had a fantantic rebound today of 1 1/2 points (+6.4%) websmart.stocksmart.com:8810/ss-news/CX453819.html The earnings report is due out next week on May 29, 1997. There should be no doubt that TECD will exceed earnings expectations. With the dollar down and good computer sales this past quarter it's smooth sailing for this beaten down stock. TECD is WAY OVERSOLD! During the recent rally TECD managed to jump up 5 ($22-$27) points and gave it back. The stock closed yesterday at $25. So, I would expect TECD to spurt past $30 this time around with the earnings report and potential 2-1 split announcement. The board is asking the shareholders a vote to double the common shares from 100,000,000 to 200,000,000 at the June meeting. OPTION PRICES: Here are the current option prices for ROST from stocksmart.com Here are the current option prices for TECD from stocksmart.com Let The Trend Be Your Friend! Check out the chart for ROST. View One - Insert 50 days for the moving average, Candlesticks, and Bollinger Bands and press enter at stocksmart.com View Two - tscn.com Here are the sectors with the strongest covered call writing opportunities can be found at stocksmart.com VIX VOLATILITY INDEX Here is another freebee. You can plot the VIX for a 50 day moving average to get a feel of the volatility at stocksmart.com That's It! Wishing all of you, the BEST OF GOOD BUYS! ********************************************************************************* DISCLAIMER: The writer is presenting a real stock and a live ongoing case study. No recommendations or endorsement to actually buy this stock are suggested nor implied. Trading stocks and buying calls should not be attempted without first understanding the risk/rewards of this type of investment! The writer assumes no responsibility for the opinions being expressed! Buyers always be aware! *********************************************************************************

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next