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

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To: David L. Hoevener who wrote (8789)	10/11/1998 8:46:00 PM
From: Herm	Read Replies (1) of 14162

Let's take a look David at pick for this week SIG using W.I.N.S. SIG has an annual winnie growth rate of 3.6% vs a premium P/E of 17. Let's look at other possible W.I.N.S. clues. Review the situation, technicals, price history (STP). What is the situation? - Start with P/E Value A little high for for a 17 P/E! I would suspect normal price movements. Let's see! NYSE: (SIG : $34 15/16) (SIGEP : $81.00)$826 million Market Cap at October 9, 1998 Trades at a 4% Premium PE Multiple of 17.0 X, vs. the 16.4 X average multiple at which the Small-Cap U.S. Utilities SubIndustry is priced. What do the technicals look like? BB and RSI Hummm! Just about ready to Tag off the upper BB setting a new 52-week high of $35 and the RSI is still moving up. There may be follow thru with a high RSI and then a normal profit taking pull back. You found another one with potential. although, SIG does not trade options! So, shorting SIG stock straight may pay off. askresearch.com What does the price history look like? BB and RSI SIG is hitting the high and should bounce off upper BB. SIG should move down. So, shorting that stock itself.

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