Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Herm who wrote (11452)	8/28/1999 6:06:00 PM
From: Shell R. Poust	Read Replies (1) \| Respond to of 14162

Hello Herm I sold the Sept 7 1/2 calls at 1/2 on Friday and hope IFMX does continue sideways til the 17th.Decided to do this based on past September-October market performance for the Dow and looks like IFMX hits that 7 1/2 to 8 resistance. Hope all is well Shell

To: Herm who wrote (11452)	8/30/1999 12:27:00 AM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

IFMX still moving sideways! Yep, it sure is, but for better or worse, I'm staying with my instincts on this one. I'm not posting this to be contentious. Rather, in the spirit of looking at case studies, I'm just letting you all know what I intend to do and why. Time will of course tell if my instincts prove right or wrong. IFMX spent most of the day Friday knocking on the 7_3/4 resistance in a generally lackluster market before slipping a few teenies with the end of day sell off. Volume has been up the last three days compared to the last few weeks. If that resistance yields, I expect a minor pause at 8, and when that gives way we could see another breakout like the end of June. My plan is to give IFMX this week to break out on the chance of taking a healthier premium on the Oct10s or Nov10s. If it fails, I should still have an opportunity to take about 5/8 to 3/4 on another round of Jan10s. I view the risk of losing a teenie or two on the Jan10s well worth the upside potential of gaining 1/4 to 1/2 with a closer expiration date on a breakout. Of course the macro market could go south and take IFMX with it, but I'm betting on a retest of recent highs before that happens. One strong day overall could be enough for IFMX to punch through.