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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: James M. Landt who wrote (13450)	12/4/2000 11:21:22 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Welcome to the forum James. The price for QQQ has move down ward from around $120 to $62 currently which is the low. So, $90 is about the average price. As of this writing, that $90 JAN01 QQQ LEAPs was priced as high as $40 ($4,000) to as little as 1/4 which is the current out of the money price. QQQ Index - Chart finance.yahoo.com QQQ calls at a $90 price finance.yahoo.com A covered call for an index like QQQ is called a spread. Here is a LEAPs Spreads with QQQ if you think it has reached a bottom and will reverse. You buy : 60s QQQ JAN02 LEAPs @ 21 (B.E.=$60+$21=$81) you sell: 82s QQQ JAN01 CALL @ 7 ----------------------------------- net cost of the LEAPs $14 after the first spread. ROI 33.33% if not called out and 1 point if called 0r 38% ROI. QQQ Technical Chart stockcharts.com[L,A]WALLYYMY[PD20,2!C20!F][VC60][ILB14!LG] The QQQ weekly chart profile suggest a bottom price support at $60. Currently, the upper and lower BBs are still in a divergence. The center MA is still in a downward bias and the RSI is at an all-time low. This index is somewhat new and there is no telling how low it will go. I would lean towards a bottom is coming in the next few weeks..... Here is something I'm tweaking that allows you to discover the market markers for any stock or index. Look up the stock or index and note the MMs. Once you look up who they are you can track them using Level-II quote screens and/or market data from the web site. Lookup The Market Markers leapspreadswins.com