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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 (13109)	8/5/2000 2:47:49 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hello Jaytee, Interesting background information on this stock and the whole laser industry. An average 16% growth rate and a P/E of only 11.2 at this point. Sure,does make it cheap. The short interest is getting up there. It could be an interesting earnings release around July 20, 2000 without any early news warning. You would think tha CLZR would warn if they were planning to announce bad news. So, that's good! Good price support at the current $10 price level and the overhead resistance looks like a solid $15.00 if CLZR would gap upwards. As far as news about lazer surgery? thestreet.com Here is another play with COHR! stockcharts.com[L,A]DALLYYMY[DE][PD20,2!C20!F][VC60][IUB14!LG] LASERS. MEDICAL CARE PRODUCTS. SCIENTIFIC AND RESEARCH INSTRUMENTS. SURGICAL AND MEDICAL INSTRUMENTS. ELECTRONIC WARFARE SYSEMS. Designs, manufactures, markets and services lasers for medical applications. Also licenses and sells medical products. NASDAQ: (CLZR : $10 9/16) $129 million Market Cap at August 4, 2000 Trades at a 65% Discount PE Multiple of 11.2 X, vs. the 32.1 X average multiple at which the Medical Products SubIndustry is priced. Short Interest for CLZR is 7% of the shares outstanding, requiring 7 days to cover. 1 Year Short Position Summary Month Short Interest Pct.Chng Avg.Volume Days to Cover Jul 00 861,712 +0 139,895 7 Jun 00 862,213 -8 142,928 7 May 00 933,316 -3 103,090 10 Apr 00 641,153 -28 131,746 5 Mar 00 893,564 -18 176,173 6 Feb 00 1,090,721 -10 170,456 7 Jan 00 1,209,762 -14 80,942 15 Dec 99 1,405,104 +9 84,539 17 Nov 99 1,290,861 +11 136,433 10 Oct 99 1,157,786 +47 122,888 10 Sep 99 788,214 +31 201,729 4 Aug 99 603,872 -8 202,353 3 Summary of you play JayTee! FEB 01 7.50's (buy @ 4) and NOV 12.50's (sell @ 1.125) approx 29 pct? You breakeven is $7.5s+$4=$11.5 plus commissions. IF CLZR GOES UP! I ran the numbers through the Options ToolBox 3.0 position analysis. If CLZR moved up to a stock price of $12 5/8s by the expiration day in November, the short call you sold would be worth 5/16s and be in the money by 1/8s and you would be called out. But, your long call would be worth at that point 5 1/4s with almost two months to go. So, it is possible if CLZR continued to go up you would be better off covering and then selling the long call to recoup your money and perhaps a tad more profit. Or, just let yourself be called out and pick up the extra 1 point on the $12.50 strike price of the call you sold. There may be some upside potential here..