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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: Kona who wrote (11753)	10/26/1999 8:18:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Hi Kona, Good question and a very important one in the stock market. I would like to point out for the new viewers and lurkers out there that the W in the "WINs" acronym stands for [W] ithdrawing as in the stock price. So, we have a full arsenal of tools to execute before the stocks tank, as the stock tanks, and after the stock bottoms and reverses. A seasoned investor should know what they will do when those conditions warrant defensive measures and how to take advantage of the situation. Before, I give a very quick response to the question, let me point you the free WINs PowerPoint presentation at webbindustries.com and the free Excel templates to download. That will give you a much more comprehensive overview of all the tools to use in any condition. Strategies for Stocks That Tank Using your technical chart profile set to weekly follow the RSI, BBs, and OBV for a guage of how far the stock is falling. What for price support levels (flat level spots) 1. Short against the box! Not my first choice, but, it would do the trick of locking in your profits and preventing damage. There is much written on this unique technique used by the pros. abcnews.go.com 2. Write CCs at or deep in the money as far out in months as you can. This approach will bring in much revenue and take some of the sting out of the pullback and delay or prevent margin calls depending how fast you act. 3. If you sell CCs and wish to buy long sideshow ITM PUTs, it is way to draw more income while the stock plunges. 4. When the stock bottoms, write sideshow PUTs for income only if you can afford to have the stock PUT to you. It is a neat way of averaging down anyway if you are long in the stock. 5. You could also buy LEAP puts if you don't own the stock and wish to ride it down for the profit. Hope that give you ideas! You can actually make more money in a down market if you are quick to act.

To: Kona who wrote (11753)	10/26/1999 8:19:00 AM
From: Herm	Respond to of 14162

Hi Kona, Good question and a very important one in the stock market. I would like to point out for the new viewers and lurkers out there that the W in the "WINs" acronym stands for [W] ithdrawing as in the stock price. So, we have a full arsenal of tools to execute before the stocks tank, as the stock tanks, and after the stock bottoms and reverses. A seasoned investor should know what they will do when those conditions warrant defensive measures and how to take advantage of the situation. Before, I give a very quick response to the question, let me point you the free WINs PowerPoint presentation at webbindustries.com and the free Excel templates to download. That will give you a much more comprehensive overview of all the tools to use in any condition. Strategies for Stocks That Tank Using your technical chart profile set to weekly follow the RSI, BBs, and OBV for a guage of how far the stock is falling. What for price support levels (flat level spots) 1. Short against the box! Not my first choice, but, it would do the trick of locking in your profits and preventing damage. There is much written on this unique technique used by the pros. abcnews.go.com 2. Write CCs at or deep in the money as far out in months as you can. This approach will bring in much revenue and take some of the sting out of the pullback and delay or prevent margin calls depending how fast you act. 3. If you sell CCs and wish to buy long sideshow ITM PUTs, it is way to draw more income while the stock plunges. 4. When the stock bottoms, write sideshow PUTs for income only if you can afford to have the stock PUT to you. It is a neat way of averaging down anyway if you are long in the stock. 5. You could also buy LEAP puts if you don't own the stock and wish to ride it down for the profit. Hope that gives you ideas! You can actually make more money in a down market if you are quick to act.