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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: Dan Duchardt who wrote (11569)	9/20/1999 11:27:00 AM
From: Jonathan Thomas	Read Replies (4) \| Respond to of 14162

Herm, all... I have been CCing NOVL, successfully executed 2 runs of WINS, and bought the calls back for a fraction, used some of the premies to pick up another 300 shares. Now, the stock has come down, and is treading dangerously close to my NUT of just under 21. All the charts look like it is bottoming out, but this is the time CCing starts to get dicey for me. I'm not fond of the idea of waiting out for more upside when my cushion is almost gone. All the research looks to be ok, no news which would kill it, but I'm curious about the events. I'm trying to decide whether I should protect my investment, and write the 22.5s, securing a few thousands in profit, or following my gut, and WINS, and wait for the stock to reverse to the upside. It's a tough call with $21,000 on the line. Anyone see something I don't. I thought resistance was around 22, but RSI didn't drop as I would have expected with the stock price. Anyone who has any thoughts to offer, please let me know.... Thanks... Ryan

To: Dan Duchardt who wrote (11569)	9/20/1999 10:03:00 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

IFMX: The volume was up big today on IFMX (over 5,000,000 shares) and also on the Oct10 calls (3,116 Oct10 contracts sold on a day that started with open interest at 1,723). Substantial volume on the 10 and 12_1/2 calls for the next few months also. Through January there is now about 15,000 open interest on the 10s. The Jan10 puts number just over 2,000 so maybe not everyone is convinced, but those have been open for a while. Overall, calls outweigh puts about 5:1. Almost no put buying recently. Looks like heavy sentiment for IFMX breaking 10 this month. A question for those of you with a better understanding of the market dynamics and mechanisms related to options. There was a heavy mid-day sell off of IFMX that took the stock down from 9 to 8_1/2 in the space of 15 minutes involving almost 1/2 million shares. Is there likely a connection between that event and the heavy call volume we saw today (mostly in the morning). Would/could the MMs stimulate that kind of action by doing whatever it is they do when faced with such an active options market, or are the two things not connected? Dan

To: Dan Duchardt who wrote (11569)	9/23/1999 6:31:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

Mike, Those 7_1/2s are looking good on IFMX. Today they were looking better by the minute if you did indeed get your $1.50. I stayed with my plan and managed to sell Jan10s at 1_3/16 the other day when IFMX backed away from the upper BB. My average premium is 15/16. Not a bad return if I do get called out, but of course I'm looking down the road a few months. One more day like today and I'll be wanting to negotiate a trade with you :) Dan