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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: Richard Halberstein who wrote (5759)	11/4/1997 8:59:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Rich, ROST is a strong CC horse with steady growth. ROST has done very well during the correction. September same store sales were up 20%. This stock has not missed a beat since it started. Now, in looking back to last November I notice a small dip before going into the holiday season. The next earnings report is due out around November 19. No doubt the earnings will be good! The RSI is about in the middle and climbing. If you take a look at the RSI so far for the past year you will notice that the ROST RSI when getting stronger (major stock up trend) always continues until it passes 70 before pulling back. Hence, you will most likely see the same thing this time around. The earnings report will move it up and there may be some profit taking afterwards. Also, there may be some house cleaning by the fund managers. I would hold tight before writing the next round of CCs until that RSI peaks. Yes, the upper Bollinger Bands has be touched. But, ROST tends to rub it's way upwards against the upper band in the past. If anything, it just confirms the same trading pattern. If you managed to reduce your net cost basis that far down you obviously have a great feel for the stock cowboy! You have one heck of a profit in ROST Rich. You get the big hitter award for October! Ride Em CC Cowboy!