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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 (4126)8/25/1997 4:12:00 PM
From: Douglas Webb   of 14162
 
Herm: Can you take a look at INVN? It shot up ~17% today, on slightly above average volume, and with no news, and I don't know why. Also, it's now pretty close to the upper Bolinger band, and I'm wondering if this is a good time to write calls ($15? $17.5?) or if I should wait until tomorrow, hoping the rally will continue.

I also have another question: I sold Dec $15 calls on UGLY hoping that it would continue it's descent to the lower BB near $14. It now looks like I sold at the low point, since UGLY's coming back up. I'd rather not have to wait until December for the time value to drop; is there another play I might be able to do sooner, if UGLY doesn't let me dippity-do before the Sep earnings report?

Thanks...
Doug.
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