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: Herman J. Matos who wrote (57)	2/12/1997 9:06:00 PM
From: Herman J. Matos	of 14162

HOW TO WRITE COVERED CALLS - A REAL CASE STUDY! ================================================================== PAGE #6 Date: Wednesday, Feb. 12, 1997 The stock: ROSS STORES (ROST) Last traded at $45.875 up another 3/8 on Wednesdays' close with a total volume of 162,900 shares traded. The 2 for 1 split - Record date was yesterday (Feb. 11, 1997). So, the stock is up so far 1 7/8 since Friday's close and is inching even closer to the stock's high of $52.50. Volume for the ROSS STORES March 45s traded 144 contracts today raising another 1/4 in value to 3 1/2 and raising the Open Interest to 747 from 672 yesterday. Whereas, the March 40s traded only 30 contracts and was down 1/8 to 6 3/8 but raised the Open Interest from 146 to 150. It would seem that twenty six contracts were sold for the cash or exercised for the stock itself. The majority of the volume purchases were made earlier than last Friday when we noticed ROSS STORES and jumped in on Monday. So, with a high of $52.50, when ROSS Stores split 2-for-1 into the low $20 it should move up to at least $26-$28 before the first round of profit taking starts. I will give you a better picture when the data is adjusted and I can view it my SuperCharts program. I will give you advance warning when you should start to write your covered calls AT THE MONEY (if you are aggressive) and OUT OF THE MONEY if you are an easy going covered call writer! ================================================================== END OF PAGE #6 CONTINUE TO PAGE #7 ********************************************************************************** DISCLAIMER: The writer is presenting a real stock and a live ongoing case study. No recommendations or endorsement to actually buy this stock are suggested nor implied. Trading stocks and buying calls should not be attempted without first understanding the risk/rewards of this type of investment! The writer assumes no responsibility for the opinions being expressed! Buyers always be aware! **********************************************************************************

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