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

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To: Roger Louis who wrote (7105)3/19/1998 6:13:00 PM
From: Herm  Read Replies (2) of 14162
 
Well Louis,

Ahhh, Well check this out Louis! CPQ is at an all time low right now! It may be one or two quarters before CPQ can cut cost, raise income and turn things around. In the meantime, you could do another round of CCs and keep the premies. The stock will most likely go sideways for while. Keep an eye on the BB and RSI indicators for clues when to CC and grab a few 1/2 to 3/4 point hits. I would rather be called out of a stock than to just sell the stock outright at these price levels. It does not hurt to grab a two month at the money strike price premie before you hit the road. The premie could be seed money elsewhere.

Let me ask you Roger. I take it that margin is not possible in a Keogh account?

Thanks for sharing that information.
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