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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: R. Gordon who wrote (6634)2/2/1998 10:06:00 AM
From: Herm  Read Replies (1) | Respond to of 14162
 
The short interest for ROST I stated are for Dec. thru Jan. 15, 1998. So, you can go back and see the month to month change in the ROST price vs. the short interest.

As the short interest increases it creates a larger float thus watering down the stock price. The old supply and demand concept. You increase the supply of stock, you decrease the demand and lower prices is the result.

As the short interest decreases it reduces the float thus increasing the demand for the stock and the prices go up to help satisfy the demand.

Take a look at Doug's chart for the signals to buy and sell. Note the approx. dates and compare to the short interest.

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