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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 (11623)	9/29/1999 5:49:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Dan and Lurkers out there! As you know by now, ROST is up today to $20 1/4 +3/16s and your 20s Oct are going @ bid 13/16 - ask 1 last 7/8s. The - Volatility -- 20 Day: 35.5% Half Year: 31% which is low. The time decay is kicking in Dan. You would need to clear $20+1 1/4=$21.25 for a possible B.E. on exercising the stock and CCing to lower your net cost basis. Is it likely? Sure, with a market rally after this oversold condition that is starting to worry people. NASDAQ: (ROST : $20 1/4) $1,930 million Market Cap at September 29, 1999 Ranks 547th in the Fortune 1,000 on Revenue & 527th on Profit. Employs 20,100. Trades at a 43% Discount PE Multiple of 12.1 X, vs. the 21.3 X average multiple at which the Discount & Variety Stores SubIndustry is priced. Discount & Variety Stores SubIndustry up .69% / Retailers Industry down < .56> Today

To: Dan Duchardt who wrote (11623)	10/5/1999 10:00:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Goodmorning Dan and Fellow Lurkers! Well, Dan! You should be feeling pretty good as of yesterday with ROST. Very nice climb! This stock did practically the exact price movements. This stock is still a CC workhorse with fair to moderate occasional risk. I would project ROST at the next overhead resistance level of $23 before the expiration date. iqc.com My 6 long ROST sideshow calls for the 22s OCT are slightly in the money as of yesterday and should be well into the money by the Oct. expiration. Especially, since I'm suspect we may see a market rally for the rest of the week. Everyone is spooked right now and the markets are bound to do just the opposite. RideEm CCers. As a side note, I would like to comment on my own portfolio. The recent market downturn came and went with little impact to my portfolio. It practically is the same value. Thus, my defensive WINs CCing provided a very nice neutral profit holding outcome. My portfolio never fluctuated up and down by more than a mere 1%. The long CCers buyers ate the lost and I get to keep the bulk of their premies. Further, I had nights of restful sleep not worrying about the money! Losing sleep over money is the worse state of mind to be in. It impacts your health and mental well being. Don't be prideful and try to figure it out yourself. Ask for help! That is the value of forums like this. You can be proud and not admit a mistake and go right into the $$$ abyss. A very expense lesson. Trust me, I have been there myself. No Mas! No Mas! ITDS I'm tempted to cover my CCs on this darlin of a stock hit by some massive selling not to long ago. The chart is showing some solid consolidation and a narrowing of the upper and lower BBs a horizontal to slightly upward moving average is a good sign ITDS is ready to gap. The recent take over news mentioned a buy price of $10.50 and the stock is selling for $8.00+. So, there is upward value potential. Add the CCs and you have a cheap CCing stock candidate capable of a compounded 50% annual ROI easily. WINs Email Corner Many thanks to Bruce who reads our forum and emailed me from Prague, Czech Republic. Bruce is an American educator working in far out lands on planet earth. That experience is something I often dreamed about and never did myself. You see, I'm also in the field of education and not the investment industry. So, I do relate to you folks out there. I'm no different than the rest of you. Indeed! I understand we have some people from 50 countries around the world interested in CCing for income. Also, I have yet to hear any complaints about WINs not working or they don't make money. That is the best part for all of us! How can free information be so effective? So, in my column (The WINs Corner) in the next issue of the FREE newsletters at coveredcalls.com I will be sharing Bruce's very nice contribution called the WINs Quick Reference Card. Leave it to those teachers to create very nice visuals. The card basically categories the technical indicators of the BB and RSI relative to the WINs phase of the price movement. In other words, all the "signs" which are repeated over and over. It is not to be used before you have an understanding of WINs in the first place. I'm almost leery to release it because there will be some people looking for a quick Wade Cook type mega success by just reading one page of summary notes and never investing the time to learn about the WINs approach. Those are the type of folks that can eat up my time and yours. Hint, I liked it so much that the interactive WINs CD will include the Quick Reference Card with hyperlinks for chart reinforcing examples.