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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: Dave Pestle who wrote (11860)	11/20/1999 1:13:00 PM
From: Herm	Respond to of 14162

Hi Dave, DIS FUNDAMENTALS To me a good stock CC workhorse is a stock you would not mind owning for the long term. Let say more than one year. It should be a stock that has plenty of liquity with open interest in the options. If the stock offers LEAPs, all the better. DIS does offer LEAPs. I picked up 3 of the DIS 30s JAN02 LEAPs this week myself. As far as value, it should be selling at a discount with the possibility of an upward reversing trend in the near future. Meaning? I want to milk some CCs along the way and get capital appreciation in the stock eventually. DIS does fall within those parameters. You see, if the stock has been beaten up already, then there is more upside potential than downside at that point. DIS is dirt cheap at this point. NYSE: (DIS : $26 3/4) $55,881 million Market Cap at November 19, 1999 Ranks 44th in the Fortune 500 on Revenue & 36th on Profit. Employs 117,000. Trades at a 48% Discount PE Multiple of 38.8 X, vs. the 75.1 X average multiple at which the Diversified Media SubIndustry is priced. DIS TECHNICALS DIS is showing a good consolidation base with the second leg of a double-bottom pattern just completed with a very low RSI reading of around 20. Going back 3 years for DIS shows that 20 is about rock bottom for DIS. OBV is on the increase and cash is moving into the stock. Volume is starting to increase. Upper and lower BBs are starting to slant towards an upward right slant and positive. Nice clean tags on the BBs makes DIS more predictable and less of a viper. askresearch.com Put all that together and DIS is a CC pony waiting to take us for a nice ride.