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Biotech / Medical : Neurocrine Biosciences (NBIX) -- Ignore unavailable to you. Want to Upgrade?

To: Scott H. Davis who wrote (794)	8/28/2001 11:53:15 PM
From: Miljenko Zuanic	Respond to of 1834

Scott or other TA gurus, Let see can we (on paper or in real who like) play this resistance-support theory by contracts, covered calls. For instance, let say that resistance is at 40-42 and support is at 30-32. Than, one can sell Sep. or Nov. calls @35 for 5-6 or 7-8 respectively. Nice profit of 15-30% for one-three months, without loosing position. Normally, IF price stay in range. However, doesn’t one-year chart look like prolonged cap-and-shoulder? If market (and sometime without market support) do recover or trade in range (more likely), isn’t to expect that price can break-out and reach new high (60-65, and maybe+70)? In this case one lose position, or buy calls back with loses? Any other suggestion-prediction-speculation-whatever-…? TIA, Miljenko