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To: abuelita who wrote (29190)8/16/2000 8:20:37 PM
From: Mannie  Read Replies (1) | Respond to of 35685
 
Hi Rose.....You have a good point, I guess I am trying to avoid jumping from stock to stock each month. But when one runs away from you, you definitely need to have a fresh horse to straddle.

I really like where SSTI is sitting right now for next month. I like the idea of getting to know a couple of stocks very well, and then work the #@*^* out of them, month after month.

Scott



To: abuelita who wrote (29190)8/17/2000 7:26:56 AM
From: cowgirl-ona-1eyed-horse  Read Replies (1) | Respond to of 35685
 
Mornin' Rose,

I saw your post about writing CCs on ADAP.

I'm all for writing CC's on stock at lower end of trading range, but...

Is the stock trading lower because of fundamental business reasons? Has it breached the 200 DMA? Is it still falling?

I don't follow ADAP, but here is the chart:

finance.yahoo.com

ADAP is WAY BELOW it's 200 DMA- WHY?
It may be a great play-is it worth the risk?

--------------------------------------------------------------

OTOH, Look @ LPTH

Does everyone know LPTH is now trading options? I'm getting ready to buy more shares for the purpose of writing CCs.

Consider:

LPTH is trading between it's 50 DMA and 200DMA. Stock is uptrending.
Closing price yesterday- 35 7/8
CC premium Sept. 35= 4 1/2 or ~13%
CC premium Sept. 40= 3 1/8 or ~8 1/2% plus another 14% stock appreciation if it is called for tot. 22 1/2%

Here is the chart:

finance.yahoo.com

I'll write the 40s expecting to get called, rake in over 22% ROI for the month. I WANT THE STOCK TO GET CALLED AWAY, because I usually write slightly OTM, wanting the benefit of the appreciation as well as the premium.

I'm trying to pick vehicles at the lower end of trading range, but STILL IN UPTREND.

Comment welcome,
cowgirl