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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: Dan Duchardt who wrote (12182)	1/15/2000 11:57:00 AM
From: PeterCS	Respond to of 14162

Thanks a lot Dan, That is all very ,very helpful.It does help to talk to someone, it starts to clear up the thought process. This is a great thread, everyone is very helpful and willing to share. I think you are right about doing nothing at this time.After reading your Post here is how my thoughts are turning. If I buy back the option at this point at about 3 1/2 that would put my nut at about 11 and I would go into a losing situation on any drop in price on the stock. At 11 I don't think there is too much increase in price that will happen.As you say maybe 12, but risk/reward is not good.By doing nothing I get about 2 points of profit. Looking at the charts I see the following. On daily chart if one draws a downtrend line on the peaks it hits around 11 indicating it could turn down. We are getting less and less volume the last few days on the increase in price.The upper BB band has come down to meet the price bar. It could turn down at this point.The weekly chart to me is still pointing up. I agree it is much safer to wait for the next time it tags the lower BB with a low RSI. I am open to all suggestions,and if I am wrong with anything I wrote, please correct because that is how one learns. Finally, I think this Post will fit into box! Dan, you must be a night owl- your Post at 2:24 AM!