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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: Jonathan Thomas who wrote (12052)	12/11/1999 11:36:00 AM
From: Herm	Read Replies (3) \| Respond to of 14162

Hi Ryan and fellow lurkers, I understand your strategy, but my point/questions were mostly related to difference in stock ownership CCing versus LEAP CCing. I think, I understand your question and your points in the conversation. That's good you bring it up the finer details. There are pros and cons to any type of investing. On the one hand, CCing stocks is easier to learn when one first begins dealing with options. On the other hand, LEAP spreads offer fantastic profit potential for the investor comfortable with the stock CCing process and understanding. Including a portion of the portfolio positions with LEAP spreads is relatively easy money with a modest increase in risk. Good chart reading skills and a cool head reduces that risk considerably. Believe me, I read every post your write, I bookmarked this subject the first day you started it. I just think there are some fundamental differences between stock and LEAP CCing that are potential pitfalls. I follow WINS very closely, I feel it is an accurate system, provided you have picked a good stock. I was just curious because LEAPS add that new dimension of time premium working against you, and not for you as we usually expect in a stock ownership CC situation. Yes, we are in agreement. I would like to explore this type of investment some more. It is a close cousin to writing covered calls. As I write, I'm working on the LEAPs table that will provide some data on my web site. First, to list all of the stocks that offer LEAPs. Second, to present a quick way to plot them with the BB and RSI. Third, to eventually sort them by profit potential. That will be the last feature added and the most involved technically from a programming standpoint. If anyone has suggestions from a programing solution they can email me.

To: Jonathan Thomas who wrote (12052)	1/27/2000 8:14:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

IFMX Well, IFMX came out with pretty good earnings numbers last night after the close. After-hours trading recorded 200,000 plus shares up 1 5/16s from the close. So, IFMX is in a breakout mode with the RSI just about a the IFMX peak and plenty of waiting sellers ahead. siliconinvestor.com Take a look at the overhead resistance in the IFMX chart set to a weekly profile. In particular, in the late part of 1996 and about to the first quarter of 1997 before the big dump below $15.00. IFMX will be fighting an uphill battle from $15 to $23 dollars. Why? Because all those who paid more than $15 two years ago will be tempted to sell IFMX in the coming weeks because this will be the first opportunity to do so. How much sleep have those investors lost over the past two years with DEAD MONEY in their portfolio during one of the most profitable periods in the history of the stock market? They will be chopping at the bit to break even and perhaps make a small profit if they can with IFMX. First, the chart tells me that the IFMX price will be choppy at best unless IFMX discovers how to travel in time and see what the competition ORCL is doing and come back and do it first and better. I don't think so! So, they will have to pay their dues and work for it. I think they can! Second, I believe IFMX will move into a new price range above the $15 to $20 for a while. Today, it will be an upward gap at open of perhaps 3 points to $16 to $17 and it may be a good time to lock in some CCs in the $20 range a few months out.