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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: blankmind who wrote (7155)	3/23/1998 8:04:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Blankmind, Your thinking out loud is accurate! I would only add that you could execute what is called a BUY/WRITE through your broker. That means you buy the stock and at the same time write the CCs. Usually, the stock is sold at ask and the option is sold at bid. This will yield a slightly better return on the option side for you.

To: blankmind who wrote (7155)	3/23/1998 4:21:00 PM
From: Ali Husain	Respond to of 14162

Hi Blankmind, Here is how I calculate CC on VVUS. I am taking the closing figures at the end of today's session. VVUS 1000 shares at $10 3/8 Your margin investment is $5300 approx. You can either sell Apr10c at $1 1/4 which will return 24% if unassigned or 17% ROI if assigned or you may sell Apr12.5c at 3/8 which will return 7% if unassigned or 47% if assigned. If you are conservative go with 10c or if you really believe in stock go to 12.5c and you may get 47% if you get called out. Ali Husain

To: blankmind who wrote (7155)	3/23/1998 8:55:00 PM
From: Sam2482	Read Replies (2) \| Respond to of 14162

Hi Blankmind, The following is the way I would play VVUS: Sell to open 10 May 10 puts @ 1.125. Your credit - $ 1,125. Your cash outlay _ $ 0 I'll let you figure out your percentage gain on zero if it expires worthless. ( pretty good rate of return...on nothing) If the stock gets " put " to you ..your in at 8 7/8. Then you sell calls until you can get out at a profit. Use your marginable securities to cover margin requirements. Use the cash you were going to use for stock purchase to earn interest or other opportunities. Good luck!

To: blankmind who wrote (7155)	3/26/1998 8:16:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Hello Again, According to Doug's two-line chart, VVUS plotted a neutral block yesterday and needs to be confirmed today or tomorrow's trading day. If we get an upside move it could fill in the block with a buy signal. webbindustries.com As you may recall, I am tracking this 2-line chart in order to determine how well it works as a CCing tool to assist with buy/sell decisions while CCing for extra income. Interesting, there were some VERY LARGE BLOCKS of VVUS stock traded after the bell last night. Somebody knows something relating to either PFE FDA announcement, VVUS FDA announcement, or VVUS earnings due out soon. The recorded prices were much higher than the close. You might see a opening spike up tomorrow, Thursday, March 26, 1998!