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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: Herm who wrote (11414)	8/24/1999 1:53:00 PM
From: Amit Raj	Read Replies (2) \| Respond to of 14162

Herm! I have a question about the protective put on the CC position on MCOM. I have sold JAN25 calls for 8 1/4 and want to buy puts for down side protection. The puts are very expensive. The cheaper puts I can get are JAN12.5 for $1 1/4 or JAN10 for 3/4 while the stock is about $27. My question to you is how many strikes down should one go for this kind of protection. Suggestions from any one who has this kind of experience are most welcome! Amit

To: Herm who wrote (11414)	8/30/1999 10:39:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Here are a few stock updates that we have been watching and learning from. >1.ABTE- we were looking to sell DEC99 10s for about 1 7/8. Price now about1 9/16. Have we missed this round or is it just wandering? The upper and lower BBs are narrowing under the daily chart profile and there was a lower BB tag for sure last Friday. On the weeky profile the trend is still up! Slight sideways movement with an upward bias is most likely Bob. Hold at this point and do not write CCs. The stock is still moving upward. It may be a while before a gap upward again. No action is necessary at this time. >2.ITDS-was yesterday a tag in your opinion (Volume was higher than recent norm)? Stock price just about 3/4 above all time low. No support below 7. Would protective puts be in order here? On the weekly profile we still have a recovering stock with a strong sideways narrow range of trading until the upper and lower BBs narrow quite a bit. I have my CCs in place and holding. On a daily basis ITDS has definately made a lower BB tag and it will not take long before an upper tag is obtained. If you had CCs you would hold and let the CCs decay some more. Other wise, you need to wait before a break out to the up side happens again. RSI is still dropping and it is not at rock bottom again. Stocks bottoming out usually retest the lows before making any serious rebound. It makes sense since ITDS next earnings is not until October. So, September will be the consolidation period for ITDS. >3.IFMX-No real question here I guess. We are waiting to CC so looking for upper BB tag with volume spike and RSI roll. RSI getting high and OBV just starting to show some upward movement. Looks like it might top out at, or a little below 8? Is that to low to CC? The weekly chart profile does show a continued narrowing of upper the lower BBs and a sideways trend. The daily chart profile does confirm an upper BB tag and reversal starting. The stock is cycling between a range of $6.50 to $8.00 at this point . Writing a spread against your LEAPs at this point would not be very profitable since you need to exceed the strike price plus what you paid for the LEAP. Say, 12 1/2 strike on the CCs for about 1/2. Would that be worth it to you?