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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 (12357)	2/15/2000 8:10:00 AM
From: Herm	Read Replies (4) \| Respond to of 14162

OAKT Hi JayTee! Here is a stock with no earnings and it takes off bigtime! How about that for logic??? Well, you only have the chart profile when the fundamentals are not considered. You did good Jaytee. You are brave to ride this stock without CCs backup. I wonder when they are going to offer options?? NASDAQ: (OAKT : $19 3/8) $981 million Market Cap at February 14, 2000 Loss Expected for 2000; Semiconductors SubIndustry priced at 54.0X PE Semiconductors SubIndustry up 1.54% / Electronics Industry up .82% Today siliconinvestor.com I still like ROST which as stalled pretty much at what the chart indicated it would. There is more upside potential here than down. Although, I suspect more sideways for now. Look for the upper and lower BBs to narrow as a clue to a pending gap. Until then, the CCs are easy money! NASDAQ: (ROST : $14 11/16) $1,400 million Market Cap at February 14, 2000 Ranks 547th in the Fortune 1,000 on Revenue & 527th on Profit. Employs 20,100. Trades at a 60% Discount PE Multiple of 8.6 X, vs. the 21.4 X average multiple at which the Discount & Variety Stores SubIndustry is priced. Discount & Variety Stores SubIndustry down < .72%> / Retailers Industry up 1.42% Today. KM Kmart at these levels is a conservative play. Heck, check out the LEAP spreads using the 10s JAN01 @ 1 3/4s with the long 15s Sept. CALL @ 3/8s2. You breakeven for the LEAP is 10 strike +1.75 cost=$11.75 and the call spread is at $15 strike @ 3/8. That's 22.4% in six months if not called out and another $3.25 in intrinsic value if you are called out for a whoppin 221.43%. You can buy quite a bit of LEAPs at 1.75 for the KM 10s JAN01. The open interest is at 5,300+ plus and should be NO PROBLEM! Great risk vs. reward my friend. NYSE: (KM : $8 7/16) (KMpT : $40 3/4) $4,073 million Market Cap at February 14, 2000 Ranks 15th in the Fortune 500 on Revenue & 160th on Profit. Employs 278,525. Trades at a 68% Discount PE Multiple of 6.9 X, vs. the 21.4 X average multiple at which the Discount & Variety Stores SubIndustry is priced. Discount & Variety Stores SubIndustry down < .72% > / Retailers Industry up 1.42% Today Hummmm? I may do this one myself the more I look at it! :-)