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: Herm who wrote (10377)	4/14/1999 9:45:00 PM
From: Dan Duchardt	Read Replies (1) of 14162

Thanks Herm, No question about this one being a rock and roller, but as the daytraders like to say, the game is all about perceived value, not true value. The spike of yesterday was news driven, and based on the pattern of the last few months, I'm expecting support to build around the high of the last surge back in mid-March, or around the present level of 17 to 18, and a narrowing of the BB range. I'm thinking that if it pulls back below my NUT, it will be perceived as oversold and I can probably buy back my calls fairly cheap with relatively little downside risk. Then I can catch the next spurt with new writes, or just sell the stock at a nice profit. I don't have the fortitude to buy these crazy internet stocks outright. I'm doing a little experiment here to see if I can milk some money out of them in a relatively safer manner. The volatility should provide some good opportunity if you pay close attention to the moves.

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