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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: Herm who wrote (11986)12/2/1999 10:13:00 PM
From: Dan Duchardt  Read Replies (1) | Respond to of 14162
 
Herm,

Are you still following ABTE?? Gave us a nasty dump today on news of possible earnings restatement resulting from an SEC investigation. The vultures immediately descended with Asensio putting out one of his scare letters hinting at bankruptcy (no foundation for it that I can see), and then this evening the law firm handling an older class action suit seeking leave to amend their complaint to include the issues raised by the recent investigation. I had noticed that ABLE was late in reporting their earnings, but never saw any news about it until now.

Anyway, I've made some money on this one over the last few months, but I'm regretting I didn't bail out this morning around 9 when I had the chance, and even more so that I held out for one more day instead of taking what was there when it touched 11 yesterday. I'd be interested in your thoughts on this one.

IFMX is doing another of it's deep pull backs, touching the level it was at when I sold it (in lieu of writing ITM calls) the day before it took off. I'm looking for a re-entry point. Support at 9 looks possible, but there is plenty of room to fall before tagging the lower BB with low RSI. On the other hand, I don't see any solid lower BB tags or low RSIs on recent pull backs. Any thoughts??

TIA

Dan



To: Herm who wrote (11986)12/2/1999 11:20:00 PM
From: Jonathan Thomas  Read Replies (1) | Respond to of 14162
 
Herm,

I was just about to post when I saw Dan's thoughts on IFMX. I was thinking along the same lines as he is, preparing to get in on in at a good price point. I'm waiting to see how far it will pull back, but I'm hoping a down market can "help" pull it back in the low 8s, and get DIS back in the 26 range, so I can cherry pick that. I know you follow these 2 beauties, what is your take on them in terms of their movement, and trends.

Its hard to tell with either stock at this point, but IFMX could fall right back into it's old pattern. DIS has a LOT of resistance at 30, and seems to have bounced off it 7 times since the summer months. Even in an up market, its resistance levels are too high for it to move any more without a serious breakout. It looks like it could pull back to 26, a good price IMO. Again, I'd like to hear your thoughts...(I was thinking of just writing ITM Naked Puts when the stocks fell far enough.)

Thanks...

Ryan