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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: mc who wrote (11724)	10/23/1999 5:06:00 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

mc, I took a small position earlier at 25 5/16. I was thinking I might average down at around $23, but it never went that far. It was nice to see the rally yesterday, with a clear breakout from the downtrend that started in Late August. The daily chart has an upper BB at 26, with RSI = 38. A continued steady climb should push the BB higher before the RSI nears the peak. On the weekly chart, the BB is still above 30 and RSI is 39. I'm starting to believe the weekly is a better thing to look at, especially for things that turn over their float about once a year. iqc.com iqc.com The open interest for November is not all that huge, but it seems the current sentiment is biased toward the 25 to 27_1/2 range. The bias toward 30 last month obviously didn't take the stock there, but it was a grim couple of weeks for the market overall. If we see continued strength, the open interest will no doubt grow for the higher strike prices. $30 before November expiration looks like a real possibility to me, but that looks like a resistance level. I guess I'll wait and see if writing 30s looks attractive within the week, but I'm not committed to DIS for CCing because of overall condition of my portfolio. If it pops in the next few days, I'll probably just sell it. Good luck, and nice catch on that reversal. Dan