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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 (13062)	7/19/2000 5:18:01 PM
From: Jonathan Thomas	Read Replies (2) \| Respond to of 14162

Dan, mc, Now I don't feel so bad when I bought my July 7.50 calls back when the stock was 8.50 last week. During the runup, I sold the Oct. 10 calls for 1 5/8. Not a great price, but not so bad now that the stock has pulled back under 9. I also took a small risk, and sold the Oct. 10 PUTS for 2. I'm hoping the stock can maintain something above 9. Ditching reel.com will help their bottom line in the future. I put in an order to buy the Oct. 7.50 puts @ 5/8, putting me in a win/win situation. But, alas, I couldn't get execution on the 7.50 puts. I own the stock at almost $2, doubling up all these puts and calls. I am considering buying the $5, but the stock would have to plummet, I don't think I need that kind of insurance. On another note, looks like KM will be closing some non-profitable stores (maybe trying to make the books look good). Should help their earnings, although not in the near future. Anyone taken a look at VNWK or KNT. I used the IBD method of finding stocks with an ass-load of EPS growth, current and future, and a lot of institutional ownership. These 2 I narrowed down. KNT looks like a keeper. Good growth, but I like the industry. Hardware component sales from guys like Cisco and 3COM, etc. They just announced kick ass earnings today, but were held to only +3/8 due to a crappy day in the market. I wish I had money...:) VNWK is more risky, but it has recently taken a turn for the worse, with some bad quarters. Estimates are for returned growth, huge growth even starting in then next couple of quarters. It just bounced off it's 52 week low, maybe heading back down there. Ultra low RSI, dragging the lower BB. If you bought the stock for 12 1/16, then sold the Oct. 12.50 Puts for 2 1/16 (bid) and the Oct. 12.50 calls for 2 1/4 (bid). Your NUT would be 7.75. You have downside protection to 7.75, upside to 16 13/16. If called out you make 62% in 3 months. If you think it's too risky, buy the Oct. 10 Put for 1 (ask), or the Oct. 7.50 put for .50 (ask) as downside protection. Purchasing the 10 strike would make this an guaranteed position, because you'd own the stock @ 8.75, and would be guaranteed that 1.25 profit, no matter how low the stock fell below 10. So, you can guarantee a 1.25 on an 8.75 investment in 3 months (max). So, worst case is a 14.3% profit during that time, best is 61% (or 43% with the protective put). Someone tell me if I'm missing something. Hmm...I've almost convinced myself to dip into margin to make this play...Tell me what you think of these 2 companies all... (Dan, did you get my private email I sent you?) Ryan

To: Dan Duchardt who wrote (13062)	7/20/2000 8:21:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

There was a mention in Barron's not too long ago and I guess people started to take notice. I have been buying more of HLYW and the stock is still dirt cheap. A P/E of only 7? Heck! I'm only renting my DVD from them. I get 5 nights to view those suckers for less money than Block Busters. I go Wednesdays and return them on Monday! Bamm, my entire weekend my friends or I can take a break and watch the latest releases. NASDAQ: (HLYW : $8 15/16) $412 million Market Cap at July 19, 2000 Trades at a 74% Discount PE Multiple of 7.8 X, vs. the 30.4 X average multiple at which the Movies SubIndustry is priced. Movies SubIndustry down < .69%> / Media Industry down < .27> Today