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

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To: mc who wrote (6070)	12/10/1997 4:47:00 PM
From: Herm	Read Replies (3) of 14162

Never a dull moment with VVUS! WOW! I had to cough up do more funds to maintain my margined position in VVUS. Good thing for $ reserves! Fortunately, I don't need access to my long term investment funds. But, man those it hurt to look at the balance! Some late day VVUS buying caused a slight recovery from the lows of the day! That would strongly suggest that tomorrow will give us a trader's bounce (price reversal) for part of the day! That is, the VVUS PUTs will be cashed in and more VVUS shorts will be taking their massive profits and running! Thus, a 2 point bounce would be reasonable! Today's 13 million shares traded should wipe out at least 7 days worth of short squeeze buying. That leaves about 4 days worth of short squeeze left. It will take some exceptional news for that to happen. So, a VVUS recovery to $20.00 would be the goal between now and mid January. It is (only mine) opinion that the VVUS management stated the situation on the strong side in order get it over with and soften the blow for January earnings report. Earnings may come in slightly better than projected. There is no telling how the other drugs will fair with FDA approval. They can be delayed and that would help the VVUS price! So, no telling in this game! I plan to continue to milk those CCs and work that volatility!

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