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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: Shell R. Poust who wrote (11206)	7/16/1999 5:17:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hummm? Murphy gave another buy recommendation on IFMX. He believes the Y2K drain on ORCH and IFMX was overdone and the stocks are still selling real cheap. So, I added yesterday another 100 shares on the weakness. Got a great fill at 8 15/16s. I turned around and wrote a CC for that 100 shares today. So, I got a very good low net avg. cost basis. I started with IFMX when it was $5.00 in November 1998 and have had three profitable rounds of CCs. Currently, I'm CCing the IFMX JAN 10s and have 7 contract. Monday, I will use the CC $ premies to buy some sideshow calls for a potential spurt after the earnings release after the Closing bell on Monday. I would bet the earnings is going to be good. I can't see IFMX breaking past $12.00 without some kind of pull-back. If so, I would cash out the sideshows and buy more on any pull-back lower BB tag. Just go into a WINs mind set. If you can do the LEAPs, spring for the 5 strike JAN02s @ $6.5 which means you have to clear $11 3/4 in a spread. That's $5.00 LEAP strike + 6.5 cost = $11.5 nut. Wait for a IFMX price increase and write the Feb 12.5s CCs @ 2.5s to 2.75s. It should pop up that much on a gap. I'm going to hold until late December to turn it into a long term capital gains and re-assess the situation.