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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: Jeffry K. Smith who wrote (12138)	1/4/2000 8:40:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Thanks Jeff for your bio! One of the major benefits to the internet is the ability to "rub shoulders" with those that would otherwise (most likely) not be in our circle of associates. Thus, we can't learn new things of mutual benefit. There is always someone who has a nugget of knowledge that we don't have simply because of the lack of opportunities. To answer your question regarding BBs and RSI and lately the OBV. Yes, there seems to be a fairly high reliability in the indicators. Now, keep in mind that technical analysis is more of an art than a pure science. Plotting the net result of greed, fear, and emotions, the BB and RSI is plotted history. Take a look at any stock and they all have their unique patterns of behavior. In a gist, the closer the BBs the less volatility, the wider the BBs the more volatility and higher CC premies. The RSI measures peak extremes of overbrought conditions and oversold. Every stock has their own values for RSI. The length of time it takes the BBs to be tagged from one end to the other is a function of the float turnover. In other words, more trades being traded on a daily basis relative to the number of shares. I think of it as a car on the high way. Those in the express lane are turnover over float at a higher rate than those on the outer lanes. That helps you gauge the time factor in writing PUTs, selling CALLs, or knowing when to run the clock on time expiration situations. Read over the info and see what you think. I have a much more detailed interactive study module on the subject that I'm working on!