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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: Jonathan Thomas who wrote (11570)	9/20/1999 8:07:00 PM
From: jaytee	Read Replies (1) \| Respond to of 14162

Ryan: First of all, I'm not Herm. I'm not the expert, but it looks to me that the OI on calls for NOVL indicate that the experts (or at least the masses) are betting on seeing your stock sitting around the 22.50 for the OCT expiry. In fact, they seem to think so by a 3 to 1 margin. In fact, the OI for NOV look like they see sunny skies, as well. 25.00 and 30.00 are the popular targets. This novices eyes see that you are bouncing off of the lower BB. Granted, STOCHASTICS (stink) conflict with the RSI, but the OBV is positive. It's always easy to "make the call" when it's not your hard earned money . . . (I've been there also) but if you're reaaaaalllllly getting anxious, I've always thought it reasonable to sell off a portion of holdings . . . for easy sleep at night (collect your "sure profit/premies) and perhaps, more importantly use part of the proceeds for some "insurance". Reach into HERM's toolbox and use the premies to perform some protective measures for your remaining holdings. Again, not being an expert, and NOT ever one to give advice . . . I would personally watch it another day or so and await its inevitable move . . . probably upwards and enjoy the ride. jaytee

To: Jonathan Thomas who wrote (11570)	9/20/1999 8:27:00 PM
From: jaytee	Read Replies (1) \| Respond to of 14162

Ryan: Thought this might help (people who DO consider themselves experts): their advice individualinvestor.com jaytee

To: Jonathan Thomas who wrote (11570)	9/21/1999 8:55:00 PM
From: Herm	Respond to of 14162

That is your net before you deduct the CC premies earned, right? I looked at the NOVL chart on both weekly profile and daily and they appear to show a downward bias with the next lower support level at $18.00. iqc.com NASDAQ: (NOVL : $20 3/4) $7,244 million Market Cap at September 21, 1999 Ranks 938th in the Fortune 1,000 on Revenue & 670th on Profit. Employs 4,510. Trades at a 31% Discount PE Multiple of 41.5 X, vs. the 60.1 X average multiple at which the Networking SubIndustry is priced. The stock is still undervalued. But, October is the start of the end of the year house cleaning by the funds and getting ready for the Y2K unknowns in 2,000. Is there more up side from here than downside. I don't think so! Sideways maybe! Check out perhaps CCing NOVL LEAPs 20s JAN02 @ 8. That should let you sleep at night for quite some time! Or just cash out at breakeven and keep the CC premies.