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Strategies & Market Trends : Covered Calls

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To: dazzled who wrote (79)	5/23/1998 7:52:00 PM
From: Rob Hodges	of 86

I followed Herms other thread for a while and I recently tried my first covered call. I'ld like you guys to take a look at the stock because I want to get your opinion on my trade, and because I think it's a good stock for other people to write CC's on. RADAF (Radica Games Lmtd.) Sells hand held computer games. It has moved from 4 to 20 over the past year, but has been in a trading range between 19 and 20 for the last three months. Low volume. Earnings are coming out on June 8th and reports are that they will be up 300% over same quarter last year. I bought at 19 1/2 and sold June 20's at 1 3/8. So as Herm taught us my calculated NUT is 18.39. I kinda hope it stays in it's trading range, so that I don't get called out, because I would like to write July or Aug calls as well. On the other hand if I do get called out I'll make a nice profit, and since this is my first attempt at CC's I'll be happy. I expect that as earnings time approaches the stock will go over twenty and possibly hit a new high. It has hit 20 5/8 a few times, but hasn't broken through. Once it does I think it will rapidly go up over 25. Please take a look at RADAF and give me your opinion's. Thanks. Rob

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