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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: Herm who wrote (7133)	3/20/1998 8:47:00 PM
From: RayV	Respond to of 14162

Herm This looks like a very interesting technique! Thanks for the info. Ray

To: Herm who wrote (7133)	3/21/1998 12:42:00 PM
From: the options strategist	Read Replies (1) \| Respond to of 14162

So, in the recent case when VVUS reached $15.00 and then pulled back to $10. Had you shorted against the box at that point you would have locked in that profit. Just imagine then covering your short position by picking up the stock for $10 and grabbing that $5 profit for good. As long as you have the equity you can do it! Herm, for the sake of my education, will you help me understand the above. Is this the same as a strangle, straddle or spread? Was vvus bought at $10 and sold at $10. Is this what "shorting the box" mean. Thanks for your generous giving. Jen