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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: jaytee who wrote (12165)	1/10/2000 6:09:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Jaytee, I still like DIS and today it shot up big time. I had the DIS 30s JAN01 @ 4 and I cashed them out @ 7 5/8s. I would not consider exercising DIS until Feb. when I'm called out of one of other positions and have the money freed up to reinvest. I was going to average down and buy two more LEAPs. Can you join the DIS party now? In looking at the DIS chart below set for a 36 month historical time span, you will notice a $35.00 resistance level which DIS blasted through today to close above that. Good move! But, I'm concerned by the divergence between the upper and lower BBs which indicates quite a bit of volatility at this point. Meaning? Expensive prices for the DIS CALLs. Looking at the RSI and OBV indicates a very high value for DIS. Meaning? Way over purchased at this stage of the game. History shows that DIS RSI and OBV at current levels does not last and will soon sharply peter out! I would be more inclined to wait or perhaps buy start thinking about PUTs. The volume today of 33 million was unreal considering DIS avg. is 9,375,00. That sure looks like a blow off top! DIS Trading Summary 10-JAN-00 Ticks Money Flow($MM) Avg. Price Small Blocks +8840 -7699 +192.3 -148.7 35.1178 Large Blocks +456 -179 +657.0 -159.3 35.1249 Total: +9296 -7878 +849.3 -308.0 35.1228 07-JAN-00 Ticks Money Flow($MM) Avg. Price Small Blocks +2255 -2277 +55.2 -47.9 31.3901 Large Blocks +87 -46 +72.5 -33.9 31.4325 Total: +2342 -2323 +127.7 -81.8 31.4116 askresearch.com By the way, I'm putting the finishing touches on my new featured table chart called LEAPS OF THE DOW STOCKS by tonight. It will provide you with all of the DOW LEAPs for JAN 2001 and JAN 2002 with suggested possible call spreads. You can get the current price quotes on the LEAPs and CALLs on a 15-min delay. So, the ROI will change from day to day! In short, you would be CCing the LEAP as a surrogate for the stock which as we all know is much, much, cheaper to do and very profitable! Click on coveredcallswins.com and look for LEAPs. Also, I am going to discuss the LEAPs of the DOW table in the next coveredcalls.com (free) newsletter issue this month for those of you that don't know about it and would like to sign up!