Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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 (12163)	1/9/2000 8:40:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

Ryan, ROST is looking more attractive all the time, with a lower BB penetration on the weekly with RSI at 32. KM was interesting here a while in the 11s, and has pulled back below 10 again. Both of these are selling at P/Es well down in the single digits. I have vivid recollection of NOT buying AMES in Oct 98 when it pulled back to about 10_1/2 with a P/E of 5, then watching it rise to 47_1/2 over the course of a year. (It wasn't entirely fear that kept me out; I had other priorities to deal with). I have a feeling that once these things turn, ROST and KM have a lot of upside. I have my sights set on KM 2002JAN10 calls, and since ROST has no LEAPs, the ROST AUG15s. If I'm right, these will be great positions to carry until a good opportunity to go long and write calls, or just ride them all the way. If not, I won't have to suffer too badly. Either way, I won't need to give them very close attention; I'll just let them play out. Dan

To: Jonathan Thomas who wrote (12163)	1/11/2000 7:15:00 PM
From: Herm	Respond to of 14162

Hey Ryan, IFMX has some heavy volume today. Strange that the market would react to old news about the last CEOs and the settlement. Well, IFMX up and down is pretty much what I read in the chart history for this stock. I covered my 8 Feb. contracts today to free up some money. Considering the pounding IFMX took around mid-day, it only closed down 7/8s or 8 1/2%. The ticks indicate some buying going on. IFMX Trading Summary 11-JAN-00 Ticks Money Flow($MM) Avg. Price Small Blocks +7689 -7685 +71.2 -69.1 9.3489 Large Blocks +140 -172 +22.4 -36.7 9.2139 Total: +7829 -7857 +93.7 -105.8 9.3085 10-JAN-00 Ticks Money Flow($MM) Avg. Price Small Blocks +984 -1056 +10.9 -11.0 10.1559 Large Blocks +30 -15 +8.1 -2.6 10.1574 Total: +1014 -1071 +19.0 -13.6 10.1564 -------------------------------------------------------- SKS is so low there is hardly any downside risk for this stock. SKS has a 18.08% annual growth rate and a P/E of only 8.8. You don't see that often nowadays! NYSE: (SKS : $15 5/8) $2,301 million Market Cap at January 11, 2000 Trades at a 73% Discount PE Multiple of 8.8 X, vs. the 32.9 X average multiple at which the Department Stores SubIndustry is priced. Department Stores SubIndustry down < .90%> / Retailers Industry down < .92> Today The chart looks real sweet and the SKS LEAPs just put SKS on my "to buy" list. How about the SKS 17.5s JAN01 LEAPs @3 1/8 sound? Setup a SKS spread with the SKS 20s MAY calls @ 1 1/8 for a modest 36% (108% annual ROI) or more if you can wait for SKS to increase in price and leg into writing the call spread. Nice choice Ryan! It is just about at a rebound point! iqc.com

To: Jonathan Thomas who wrote (12163)	1/11/2000 7:20:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hey Ryan, IFMX has some heavy volume today. Strange that the market would react to old news about the last CEOs and the settlement. Well, IFMX up and down is pretty much what I read in the chart history for this stock. I covered my 8 Feb. contracts today to free up some money. Considering the pounding IFMX took around mid-day, it only closed down 7/8s or 8 1/2%. The ticks indicate some buying going on. IFMX Trading Summary 11-JAN-00 Ticks Money Flow($MM) Avg. Price Small Blocks +7689 -7685 +71.2 -69.1 9.3489 Large Blocks +140 -172 +22.4 -36.7 9.2139 Total: +7829 -7857 +93.7 -105.8 9.3085 10-JAN-00 Ticks Money Flow($MM) Avg. Price Small Blocks +984 -1056 +10.9 -11.0 10.1559 Large Blocks +30 -15 +8.1 -2.6 10.1574 Total: +1014 -1071 +19.0 -13.6 10.1564 Looks like we have a solid lower BB tag and the moving average is still positive with increasing OBV. I would expect a sideways to upward bias from here. The upper and lower BBs are starting to close in and narrow. iqc.com -------------------------------------------------------- SKS is so low there is hardly any downside risk for this stock. SKS has a 18.08% annual growth rate and a P/E of only 8.8. You don't see that often nowadays! NYSE: (SKS : $15 5/8) $2,301 million Market Cap at January 11, 2000 Trades at a 73% Discount PE Multiple of 8.8 X, vs. the 32.9 X average multiple at which the Department Stores SubIndustry is priced. Department Stores SubIndustry down < .90%> / Retailers Industry down < .92> Today The chart looks real sweet and the SKS LEAPs just put SKS on my "to buy" list. How about the SKS 17.5s JAN01 LEAPs @3 1/8 sound? Setup a SKS spread with the SKS 20s MAY calls @ 1 1/8 for a modest 36% or more if you can wait for SKS to increase in price and leg into writing the call spread. iqc.com