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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 (12307)	2/3/2000 4:51:00 PM
From: Jonathan Thomas	Read Replies (2) \| Respond to of 14162

Dan, Thanks, I was pretty happy about the news this morning. Closed up 2 15/16 to 15.5. I'm in with a 1000 shares I picked up at 13.5, and I had sold 10 FEB PUTS for 2 at the same time. I put in an order to buy back those puts for a 1/4 when ROST crossed 15, but the MMs wouldn't have it. I figured there isn't a lot of time left, and by the close (at 15.5) thats .75 worth of time I was willing to pay considering expiration is in a couple weeks. Although I low-balled, I thought I had a decent chance of buying them back. Not much option volume on ROST, which makes it kind of tough to wheel and deal. Now I need to decide at which point I sell calls, most likely at or slightly in the money. Its a good stock that has gotten beaten to a pulp, so I'm not sure how much room it has to move. It could go back to 20 without blinking, or easily stall. I suppose it couldn't hurt to sell the 15s a couple months out, but I'd like to take advantage of some upside. I could sell the stock outright right now and make 12.5% in 3 weeks...but this is one of those "keep it and ride it" stocks. Any suggestions are helpful. In the mean time, I'm pretty heavily on the WCOM bandwagon. Beaten down, great stock, decent option premiums. I sold the march 45 puts (10 of them) a couple weeks ago @ 5. Target price is 73, and I'm waiting for the price of the puts to at least go to 2.5 before thinking about buying them back. If anyone is interested, I think this will be a great CC stock. I'm still in KM, got assigned, 2k shares @ 12.50, NUT at about 11. I hope it bounces up above 10 so I can write some calls, but this stock is dogging....Not sure why. Ryan