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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 (9957)	3/17/1999 8:57:00 AM
From: Herm	Read Replies (1) of 14162

ROST the old CC workhorse is still ticking with growth, dividends, and at a discount. Hummmm? Chart price has done nicely. I would be tempted to lock in some CCs for say Aug 45 @ 5 1/16. If ROST continues the climb, then take that CC dollars and buy sideshow long calls to capture that move. Otherwise, you have 5 point downside protection. I'm VERY conservative at this point because I'm seeing red flags in the advance/decline line and the mutual funds index which is tagging the 50-day moving average. We may be in for a market pull back which will take everybody down a few points. The market is way overvalued and April dollar influx is coming to an end! Buckle your seat belts! NASDAQ: (ROST : $44 9/16) $2,123 million Market Cap at March 16, 1999 Ranks 635th in the Fortune 1,000 on Revenue & 619th on Profit.Employs 14,855. Trades at a 54% Discount PE Multiple of 14.1 X, vs. the 30.6 X average multiple at which the Discount & Variety Stores SubIndustry is priced. iqc.com

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