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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: Mark Mandel who wrote (6171)	12/17/1997 7:26:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Tri-Guy, I hope you have read the postings on this forum. I hate to see you jump in and think it's that easy. You should check out the charts for those two stocks. Plot them using Bollinger Bands and RSI indicators. Look at one year's worth of plotting. Notice any patterns of behavior when the stock reaches the extreme upper price swings and lower price swings. Now, generally if you have a stock price that is near or at the upper Bollinger band and the RSI is above 70 you could write the CC you mentioned and it should fly. If called out you locked in a small profit. If it backs off the option will expire worthless and you keep the whole shooting match. Of course, earnings release dates should be noted before you begin to do anything! News such as that will impact the stock. You must figure that into the equation and act accordingly.