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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 (7533)	5/29/1998 3:58:00 PM
From: Herm	Read Replies (1) of 14162

Hi Gary, I agree with the other responses! I would just sit back and let your existing CC round play out. You are in the money no matter what! Nobody loses money by making a profit. :-) Anything could happen between now and the third week in June. TECHNICAL CHART INDICATORS: Very nice rebound off the lower Bollinger Band (BB) and RSI was right in sync with BBs. SESI also bounced off the 200-day moving average recently. So, SESI has a long way to go to overcome that overhead $ resistance at $10.00. On three occasions SESI reached $10. Hence, there are plenty of potential shareholders that will be tempted to dump SESI if and when the prices reaches $10 for the forth time in six months. The only "planned event (news)" that would push SESI upwards is the upcoming earnings release date around July 29, 1998. That won't help much in June when the MMs will be doing their rock n roll shakeout for weak hands. bigcharts.com P/E VALUE: With a 20% annual growth rate, SESI will have to pull something out of the hat this quarter to warrant the current premium price. NASDAQ: (SESI : $9 11/16) $283 million Market Cap at May 29, 1998 Trades at a 17% Premium PE Multiple of 15.9 X, vs. the 13.6 X average multiple at which the Drilling & Marine Supply SubIndustry is priced.

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