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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: Herm who wrote (13594)	2/6/2001 5:32:45 PM
From: jaytee	Read Replies (1) \| Respond to of 14162

Herm and Others: Your thoughts on SPF stockcharts.com[l,a]wccayimy[pb09!b17!d20,2!b50!b200][vc60][iub14!lp14,3,3!ll14!la12,26,9!lg!uc20] I don't see any overhead resistance on this rocket. And, I would think the INTEREST RATE cuts can only help this BUILDING SECTOR. Was considering a call, the legging into buying underlying, then writing CC's: edreyfus.com Any suggestion of the mar 25's or 30's (2 highest OI) AND, dumb question #2: what would be the DOWNSIDE of picking up the 20's or 25's besides their HIGHER PREMIUM. It appears that when one adds the premium paid to these 2 strike prices, that it is very near the "total overhead" of buying the 30's or 35's. Should one be wary, in this case, of the LOW (or sometimes NON EXISTANT OI) on some calls like this? Reason that I ask is, that my sister in law was considering picking up some calls just to "flip" This stock looks like the "HULK" right now. Any observations much appreciated jaytee

To: Herm who wrote (13594)	2/10/2001 11:48:59 AM
From: jaytee	Respond to of 14162

Herm: A little Help? Looking for your take on my post from Wednesday: 15398 regarding spf. Picked up june 25's . Was going to "leg in". Looks like stock being pushed DOWN, like Victorias other example, JUST BEFORE EXPIRATION. JUST BELOW 30'S, which has the nearest strike with the MOST OI. My thinking, is that the building trade can only get stronger by June (with interest rates making new home mortgages more pallateable), and this co. is strong . . . Also, it's primary market is out west, where there hasn't been alot of "slowdown" . It still has a pretty good backlog. And, it had a pretty good piece written about it thursday in Investors Business Daily. Penny for your thoughts jaytee