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 (692)	3/12/1997 10:00:00 PM
From: Herman J. Matos	of 14162

HOW TO WRITE COVERED CALLS - A REAL CASE STUDY! ================================================================== Date: Wednesday, March 12, 1997 THE STOCK: Tech Data (TECD) -------------------------------------------------------------------------------------------- I mentioning this stock again because some of you emailed me and indicated an interest in TECD. For those of you that followed my opinion you and I were rewarded today with the first of more to come explosive up spurts! TECD gapped up 2 1/4 today on volume of 1,049,400 share (which was three times more than usual) to close at $27 1/8. The earnings report is due out on or around March 26, 1997. The last pre-earnings report I rode this baby up 12 big points in three weeks time! Nice hit! Again this stock is bouncing off it's 50-day moving average AND the bottom of the Bolinger Bands (tm). This stock was WAY OVERSOLD! Two indicators technically helping a stock is something not to over look! The current P/E is 21and expected FY97 earnings is $1.60, This means that a fair value for this stock is PE 21 x FY97 EPS $1.60 = $33.60. That's $6.48 undervalued at current projected EPS and I have a strong sense that TECD will deliver another earnings surprise! This company continues to make profits on Bisquit vapors! I don't care how they do it! 6 BILLION DOLLARS IN SALES IS UNREAL! The momemtium players (I know - I use to be one of them) will pick up on this stock and pump serious bucks over the next week until the earnings report when the cockaroaches will exit as if Raid were being sprayed.......... You have all the option tools to clean up all the dead roach premies. ********************************************************************************** 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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