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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 (4448)	9/5/1997 11:38:00 AM
From: Douglas Webb	of 14162

According to alphachart, INVN is hugging the upper band and has an RSI over 70. It's priced at 15 now, so based on this info, I bought back the Oct 17.5 calls I wrote earlier this week (3/16 loss, which was the bid/ask spread all week) and wrote the Oct 15. (We're supposed to write at-the-money calls at the market top, right?) This brought my net cost down to $10.17 against the $15 market price. That's less than the 52-week low of $10.88, a full year ago! I'm expecting the next earnings report at the end of October, or eight weeks. Insiders should have a good idea what the earnings will be by October 1st, though. The last few reports have been 30 days after the quarter's end. How does the timing work going into this situation? Should I try to cover my calls and stay clear throughout October, or is it safe to have options written until a week or so before the report is due? Thanks Doug.

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