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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: mc who wrote (13060)	7/18/2000 5:40:41 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

mc, I don't know either. I closed out the rest of my position to protect the profit instead of writing a new round of calls so close to the end of this cycle. I was regretting that as it rallied late today, but the daily chart BB-RSI picture, along with the morning pull back and general market weakness fooled me into thinking 9 was the top for a while. The weekly RSI is still pretty low, but the BBs have narrowed and the upper BB has been touched. Last time it looked this way back in December, HLYW pulled back off the upper BB in spite of the low RSI. Several big blocks moved today (4x50K and 2x25K), and institutions seemed to be the major interest. The 50Ks look like double prints (where the MM posts both sides of the marked up trade). Not sure which side the institutions were really on, but the big volume was early, below $9. I'm not convinced the big guys are buying at the higher prices. That might just have been a bunch of daytraders driving it up. Even I tried to get it at the breakout, but I was too slow and missed. thomsoninvest.net Dan

To: mc who wrote (13060)	7/21/2000 6:13:19 PM
From: mc	Read Replies (2) \| Respond to of 14162

Well, didn't get the pullback in HLYW I was waiting for. It has been very strong over the last week. Fortunately EFII dipped today to below 25. That was my target for adding to my position so I'll be rolling my money from being called out of HLYW into EFII. The RSI has been moving up slowly - around 40 now; bollinger bands are narrowing; there's a gap to fill from around 29 - 34 from when they were killed due to, what I think will be, an isolated poor earnings report. ONE is on a tear based on increased expectations after the announcement of the restructuring plan by Dimon. ONE has been a CC workhorse for me while providing dividends at the same time. As predicted in earlier posts the did cut the dividend in half so that might eat a bit into my strategy. I was planning on adding to the position on pullbacks, but, now I think I'll stick with building my position in EFII. Hope everyone is taking advantage of all this market volatility to rack up those CC premies. Take care all, mc