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

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To: Navigator One who wrote (5127)10/1/1997 4:19:00 PM
From: Herm   of 14162
 
Hey Navl, VVUS rocks and rolls $ all over the spectrum. You must have a teflon coated stomach or severe nerve damage that you don't fret over $4.00 jumps up and down. Your brain is saying the fundamentals are solid and the future is bright but your eyeballs and heart are pounding hard and heavy when you look at those VVUS intraday massive price swings. I say ride em Navl. 4,000 VVUS shares is four times the thrill I'm getting! No really! I think it takes LOTS more guts to be hanging out there stock bare without the CCs to back you up. I really enjoy the comfort I have when I lock in a premie and the stock starts to naturally move down in the cycle! It just takes my mind off the value decrease of the portfolio. Thus, you remain more focused and calm to work the option tools. What I have come to realize is that the stock repairs will eventually need to be covered. And yes, there may be a payback if you hold too long. Doug's tools for the TRO and short interest should help to gauge the cover point. Also, the RSI and Bollinger Bands Indicators are helpful in making decisions. It's only recently that I combined the RSI as a second indicator thanks to one of the readers pointing that out.
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