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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: alanrs who wrote (4412)4/21/2006 12:00:28 PM
From: Jerome  Read Replies (1) of 5205
 
"What makes you favor these?" Well these SOXX stocks usually have good covered call premium. If you go to the AMAT thread on SI you will note that the Book to Bill ratio for the semi companies is now 104. It has been under 1 for almost a year. This is a three month moving average that has a good historical significance.

Subject 37144

Some good insights from this thread
I would compare HPQ with IBM. Plus HPQ has beaten estimates last few quarters. My plan on HPQ would be to buy it on a down day and sell the covered call a day or so prior to earnings at the 35 strike.

Two highly undervalued stocks are AMAT and INTC.

AMAT and HPQ report earnings in a few weeks. Most of the quality tech stocks have rallied into earnings (IBM)and then either collapsed (MOT) or rallied (TXN)further.

For this reporting period "outlook is everthing" Thus a rally in GM.

I expect the rally to continue next week. This unanticipated rally was predicted by no one and that's why its going to survive.

JMO....Jerome
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