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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 (13409)	11/9/2000 8:20:45 AM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

jaytee: If my memory serves me correctly, ames reports earnings today or tomorrow, which might be the catalyst to propel the stock and reverse the current trend. Retail is usually strong during this time frame and strength has been coming back to some of the others such as anf, tom, etc. I am now back to the starting line again since I am in all cash right now. I think I will wait awhile or maybe short something unless I see the current market environment change. The opportunities on the short side are more attractive return wise right now. Yesterdays market action just confirms my point about the bear and the short covering rally of a few days ago. One bubble which has not burst yet is the biotech industry. But, unless your timing is right, you can get walked on shorting them stocks. One short idea I like for now is oat. HUGE debt and overvalued on a price to sales model. But, I like it above 90 and since I have had the cash now, it hasn't been able to move above that level. Just my opinion. Good luck virg

To: jaytee who wrote (13409)	11/12/2000 3:57:08 PM
From: Ron	Respond to of 14162

I have found in this negative tech stock market selling covered calls two months out on a move up and volume surge invariably works well. Have had successful high premium sells on EMLX and CREE in the last month as well as JDSU and QCOM. Of course the underlying stocks still stink, but the nice return on the calls makes it a lot easier for me to sit on them for longer term. Of course there is always risk with options. With covered calls the most notable risks are failure to profit fully from a stocks run up..or conversely, having to hold a stock while it tanks to unexpected lower lows. No game for the weak hands or folks who cannot hold longer term, imho.