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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: Electric who wrote (6508)	1/20/1998 3:18:00 AM
From: R. Gordon	Read Replies (1) \| Respond to of 14162

Electric, Based on my TA, I think VVUS will trend down by the end of this week. Good luck. Richard

To: Electric who wrote (6508)	1/20/1998 8:23:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

The VVUS technical indicators are starting to make sense again. That downward plung not long ago from the $20 screwed the stats bigtime. Since then, there have been enough sideways price movement days between $9.75 to $11.50 that the charts are starting to track correctly. The MACD indicates a long buy upward signal. The RSI is the high range over 50 but dropping slighly (weakening) at this point. The Bollinger Bands indicates a very narrow upper and lower band spread which usually indicates consolidation of price (forming a base) Conclusion? I venture to say (IMHO) that VVUS will contunue to move sideways with a slight upward bias between a range of $10.75 - $13.85 until news of the MCA or FDA approval is announced. At that point watch out! New money entered at this point would do fairly well CCing and locking in small gains of 10% to 15% per buy/write event. I would not go beyond a March strike price of $10 to $17.5. A very good strategy would be the Option Overlay (repair) Spread.