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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Mike E. who wrote (57495)	1/5/2000 10:11:00 PM
From: DO$Kapital	Read Replies (1) \| Respond to of 108040

BVSN from Clearstation....also nice covered call play on the stock: kensey' has recommended BVSN (Long) at Jan 5 2000 1:42PM Broadvision Inc ( NASDAQ : BVSN ) Computer - Software : 0 new highs in group of 346 Symbol Last Time Change High Low Volume ----- ---- ---- ----- ---- --- ----- BVSN 144.56 1:01PM -25.75 165.00 136.75 3,793,700 Community Take -------------- 165 Long / 3 Short 'kensey' said: adding BroadVision (BVSN) at 145. on day 2 of a sharp sell-down you have the beginnings of bottom forming. here, the tool to use is the interactive chart, 5-day, with OBV enabled. with BroadVision, we see the spike bottom below 140 which was followed by big and aggressive buying. what this means for the strongest stocks is that we have a data point for what the bottom for this stock during this correction just may turn out to be. the bet here is that this low does not get exceeded on the down-side. playing it this way : buying shares at 145 and selling the Jan 140 put for 15. this nets money if the stock is north of 125 on the third friday of this month (2 and 1/2 weeks out). also writing the Jan 170 call for 10. this is premium that is kept if the stock closes south of 170. taking in the premium here reduces the risk on the downside to 115. so if the stock is north of 115, i'll retain some premium. the margin requirement for the calls is zero since i own the shares against which i am writing the calls. the margin requirement for selling the puts is 20 percent of the underlying security. with BVSN sitting at 145, that is 145/5 which is 29 dollars. so i put up 29 in order to take in 15 so that is $900 bucks per contract. another stock that is putting in a bottom is MEDI. here we have a divergence between OBV and price. MEDI bottomed yesterday at 131. then it bounced. then it came back to test this level today but OBV did not trace down along with price. it stayed flat. now we have a bounce and the stock is north of 140. MEDI is a classic bottom formation. a retest of a low on weaker volume followed by a strong bounce. again, the 5-day interactive chart with OBV enabled provides the clearest picture. kensey See the annotated graph of this recommendation at: clearstation.com