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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: Douglas Webb who wrote (5839)	11/13/1997 9:45:00 AM
From: Herm	Respond to of 14162

Well Doug, The experience I had with USRX during the 1996 technology correction taught me to agressively write the CCs. The technology index serves as a good indicator in addition to our normal RSI and Bollinger Bands. In VVUS case, the bio-technology index. I figure, if I write CCs I have the money in the hand. Sooner or later the stock will reverse with the rest of the market and YOU WILL KNOW IT! On the one hand, you may have to cover and lose some money for that round! But, if your overall portfolio is going up you don't feel so bad! It's the price of doing business. It's like a insurance policy you are glad you have when you get into an accident.