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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: virgil vancleave who wrote (12806)	5/28/2000 12:31:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Doing good Virgil! Here is one stock that has been coming up in our WINs© Leap Spreads Data Report. I set the sort for the months and the ROI%. I came up with a 2 month ROI of 17.8% against the leap as the surrogate for the NGH stock. In other words, a calendar spread. The overall ROI for the life of the 15 JAN02 leap would be 100.89% IF the same return would be earned each round of the spread. So, it is a conservative ROI and the investor would have to work it. NGH is the stock. The weekly profile show a beautiful example of the narrowing of the upper and lower BBs at a bottom and then a divergence between the upper and lower BBs. Meaning? A big upward spike in volatility. siliconinvestor.com NGH is clearly reaching a point of overhead price resistance at the $24 marker dating back to late 1998 and into mid 1999 before the major dump to $20 and then the slow distribution phase to a mere $9.00. The stock is now in an accumulation and markup phase again. Daily NGH chart profile shows a sideways movement with OBV and RSI pulling back. There is a .12 cent dividend being being paid out June 16. Nabisco Group Holdings is #3 in revenues, #2 in profits, #1 in cash flow, #1 in assets for the food group industry with 12 1/2% growth rate. askresearch.com The NGH spread was buy 15 JAN02 [wrjac] @ 7.375 write (sell) 22 1/2 JUL [NGHGX] @ 1.313.