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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (3091)	11/30/2001 2:54:47 PM
From: Andrew N. Cothran	Read Replies (1) of 5205

(Uncle Frank: Buffet's comment over time is most likely right on target,as have been most of his investment. As for patterns,open interest for QCOM Dec options are very similar to the Nov's. Open interest in Dec options: dec jan 55's 11914 12252 60's 31032 15521 65's 20064 18882 Dec OI is concentrated around the 60 strike. Jan OI is concentrated around the 65 strike. QCOM is trending up, trading above its 200 day average. Chart action and trading volume indicate higher prices in the near term. With the above in mind, I am not inclined to short the Dec's until a few days before expiration, looking for a small profit. I may go out to January, but only on a strong near-term upmove in the stock. In other words, I will sell January options IF THE STOCK MOVES BACK TO THE MID 60'S (or higher)SOON. I will sell December nearest price options early in expiration week ONLY IF THE STOCK IS SHOWING LETHARGY (that is to say it is trading in a narrow range at or close to the nearest strike price). Hope this is not too confusing. At the moment, I am flat December and January options, watching and waiting.

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