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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Mike T. who wrote (11158)	7/5/1999 11:54:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

You are welcome. Now, for some goodies! Are You Ready to Take(on) Drugs? An article appeared in Barron's this weekend entitled, When Reform Is in The Air, Close Your Eyes and Buy! According to the analyst Saks, he is saying buy now while the prices are cheap. PFE is the example he sighted. PFE is off from its mid-April peak of 150 to around 96 before the President's address on June 29, 1999. Since, then PFE just had a 3-1 split and the stock is at $37 3/8s as of the close on Friday. PFE WEEKLY CHART PFE technically looks very good right now. A solid bounce off the $34 marker and should continue to $42 before the overhead resistance sets in. The plug in Barron's and the two plugs I heard on CNBC this weekend should add some buying interest. OBV has hit rock bottom and is climbing. RSI is now heading up after a considerable long sideways movement for three months. Stochastics climbing strong. Upper and lower BB narrowed and has exploded into an upper and lower diversgence. Price momentum is up! iqc.com SWEET PFE LEAPs The PFE price is relatively cheap at this point you have a small downside risk and much more upside potential. The PFE 23 3/8s JAN01 LEAPs @17 3/4 looks good with an open interest of 9,637 contracts. Writing CCs in a spread would require a CC strike of at least $23.375 LEAP strike + $17.75 LEAP cost = $ 41.125. Wait until PFE nears $41 and CC the 41 5/8s DEC @ 3 1/4+ (18% if not called out). PFE should pull back from profit taking at $41. CLASSIC DOUBLE-BOTTOM PATTERN FOR ATRX While we are in the drug arena, ATRX second leg of a double-bottom which is usually a very bullish sign. Pickup ATRX for $9 3/8s+ and it could move to $11.00 before the resistance sets in. The 12.5s NOV @ $1.25. You should be able to cover after the pull back before NOV. That's it! Back to work tomorrow!