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

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To: Newton Yuen who wrote (13787)	7/19/2001 8:14:49 AM
From: Herm	Read Replies (1) of 14162

Thanks Newton for that update. Sure, does look like you may need to take a second look at T. I always feel safer when I call that OCC office directly to get definitive answers. Some brokerages simply have too many young firecrackers that are not seasoned enough to deal with complex questions. So, I usually will get a second opinion if something sounds off. T</t> The weekly chart profile offers some clue as to the direction. There sure is overhead price resistance through out the $20s. Notice chart all of the folks that purchased T in the 20s before the meltdown to the low teens. The may be waiting to dump to break even. The volume is tapering off at this point. The saying "volume precedes price" holds true here. Some of the buying has been short covering. And, that buying is slowing down and the volume is tappering off even as T continues to move upwards. The current situation of the upper and lower BBs going in diverse direction indicates higher prices and higher volatility. Even the moving average has an upward bias. RSI is fairly high at 66 and climbing. In short, you are seeing a technical rebound for T. It will soon peter out and perhaps drive the stock sideways between a 20s price range. So, for T going out a few months and picking up 25s strike price would give you some upside additional potential. TWeekly Profile coveredcallswins.com[m,a]waclyymy[pd20,2][vc60][iUb14!La12,26,9!Lg] AWE has taken a beaten and can't get any lower. So, anything north is possible. AWEDaily Profile coveredcallswins.com[m,a]daclyymy[pd20,2][vc60][iUb14!La12,26,9!Lg]

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