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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 (11602)	9/28/1999 1:53:00 AM
From: KevinD	Respond to of 14162

Sit tight and be patient. There is a good chance that your Oct 20's will expire OTM. Let's wait another week and take a look at it then. You don't really need to do anything until much closer to expiration anyway.

To: Jonathan Thomas who wrote (11602)	10/15/1999 11:18:00 PM
From: KevinD	Read Replies (1) \| Respond to of 14162

Okay JT(Ryan), it looks like you came out alright with NOVL so far. If you let your Oct 20 expire or bought it back on the dip a week or so ago, your nut is sitting at 19.5 or 20.0. The stock is at 18.12 and is oversold according to the fast stochastics. You could do okay selling the Nov 17.5, Nov 20, Jan 17.5 or Jan 20 right away but I would wait a week or so to decide. NOVL is still in the MACD downtrend that started in mid July but it is showing signs of slowing down. It should stabilize here or rise slightly in the next few days, then who knows. I would be leaning towards selling the Jan 20's in the next week to drop your nut to below 17.5. You will probably get an opportunity to buy it back before then but if you don't you would have a nice 2.5 point gain locked in. That would be a 15% over three months. If you want the quick $$ you could do the Nov 20's and maybe get called but you would not be getting as much downside protection if it continues to drop.