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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: JoAnn McCracken who wrote (6306)	1/5/1998 6:38:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Yes JoAnn, "A bird in the hand is worth two in the bush." It should get mighty interesting starting on the 19th earnings release! Zebra (who is a primary care physician) just received his MUSE medical promo via the mail at his practice. This is the first attempt to "mass market" the Vivus product in this country. Now, the numbers were looking good before the maxing out in production in the old plant. In fact, even the reduced temporary numbers warrant a stock price of high $20s+ based on the P/E. There is bound to be a significant increase in demand (sales) this year for this product all over the world. It is not like shaving cream or toothpaste with lots of choices out there. If you have the medical condition you want a solution that works! Heck, If I had that condition I would try MUSE a few times to determine if takes care of the problem. And, if it did I would load up on my supply. On the other hand, if it did not work I would be letting my doctor know the product and results were "limp." There is bound to be at least a 50% increase in revenues for FY 1998. Just shear numbers game! Not to mention the startup licenses $$$$ downstroke to peddle MUSE in your exclusive territory. So, JoAnn! You paid $10 and you cash out at $15 to $20 writing an in the money CC before Easter Sunday.

To: JoAnn McCracken who wrote (6306)	1/5/1998 7:41:00 PM
From: Douglas Webb	Read Replies (2) \| Respond to of 14162

Hi JoAnn. I'm glad your Buy-Write worked out for you. If I recall, you wrote March calls, right? Since you bought another 300 shares at $10, and you're waiting until March to cash in on the rest, you may want to consider writing some January 10 calls. Look at: webbindustries.com The first option listed is the Jan 10. Assuming the price doesn't change much tomorrow morning, you can write the call at $1.3125 and reduce your net 13%, and probably get called out with a total 13% gain in two weeks. I figure you'll get nearly $400 profit from the deal, whether VVUS stays above $10 or not. (You'll get the $400 when you write the call, and if you're called out at $10 that's what you paid, so you don't give any premium back.) Doug.