How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: Bill/WA who wrote (8930)	11/4/1998 8:52:00 PM
From: Herm	Read Replies (4) of 14162

INVX Hummm? wow! It's now Nov. Bill and expiration is coming up fast. Writing that deep in the money CC at a bottom BB and RSI reading is a sure way to get squeezed in the pocket book. You broke the W.I.N.S. rules of selling CCs only at upper BB tags and peak RSI reading to avoid exactly this kind of thing. The good thing is that INVX looks good as a long term CC workhorse. Growth rate is at 26% annual and currently a INVX P/E of only 16.3. Lots of upside potential here and even pays a small cash dividend. You should be able to get back your money down the road. Cover you CCs at a loss and just hold off writing any CCs until INVX starts to back off. In fact, you may be able to cover the CCs at a lower cost after this price run to $20.00. the RSI is sky high for INVX and there should be a pause at $20. INVX P/E VALUE NASDAQ: (INVX : $17 7/16) $252 million Market Cap at November 4, 1998 Trades at a 48% Discount PE Multiple of 16.3 X, vs. the 31.6 X average multiple at which the Computer Peripherals SubIndustry is priced. INVX TECHNICAL CHART askresearch.com

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