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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: javaNkrona who wrote (7153)	3/23/1998 7:58:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Good Morning Java, Nice to hear from you again! You have done a nice job lowering your net cost basis and getting a feel for the CCing strategy. According to Doug's option chart you have the following going. Although, I was not sure if the stated net cost basis is taking into account the current CC premie collected. I believe you have already calculated that in. So, the numbers will be different. This chart would be used to determine "what if" before you take action. webbindustries.com SCOP is pulling back on a little profit taking and trading in a very small trading range. webbindustries.com I WOULD CAUTION you to hold on to your SCOP position until it is either exercised off your hands OR the premie erodes to the point in which you can profitably buy it back (80% in the pocket). DON'T OVER EXTEND YOURSELF WITH MARGIN FOR VVUS or ANY STOCK! VVUS is a viper and could whipsaw either direction thus triggering your margin calls. Finish SCOP before you take on the VVUS. It will still be there when you are ready! You could use your equity to short against the box with SCOP if you needed to protect your profits! That would be a better and conservative approach with SCOP! As you may know, I'm long on VVUS and I have been working on full time stock repairs and damage control for three months. Yes, VVUS will recover sometime within the next three months as the FDA approval finally comes. No need to take on additional risk. Pick your moves on your time!

To: javaNkrona who wrote (7153)	3/23/1998 9:24:00 AM
From: Hunt	Read Replies (1) \| Respond to of 14162

JavaNkrona The main thing in covered calls is the underlying stock. VVUS has had a major competitor enter its business. PFE now has a pill to do what VVUS's product does. The pill is scheduled to be approved by the FDA either later this month or next. How much business will this take away from VVUS, I don't know, but with VVUS being a one product company it certainly won't help. As a man, I know that if I had the medical problem needing these products, I would rather swallow a pill than VVUS's alternative. Just my 2 cents worth. Randy