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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: RayV who wrote (7166)	3/24/1998 7:08:00 PM
From: Douglas Webb	Read Replies (1) \| Respond to of 14162

What's the word on CREAF? It's been real quiet the past week or so... very low volume. The next earnings report should be in April after the APR expiration date. Creaf released it's Voodoo2 card this quarter, and sales have been outstanding. There's been a huge demand for them, and stores have had trouble keeping stocked. I'm pretty sure that DVD sales have also been very good. So, there's a good chance for another record-breaking earnings report, I think. About a week ago Creaf dropped a lawsuit on it's two bigger (biggest?) competitors: Diamond and ESS. Creaf has a patent on using the PCI bus in combination with a wavetable chip, and both Diamond and ESS have released products which Creaf claims violates the patent. The lawsuits are apparently intended to establish the viability of the patent claim. I'm guessing that the low volume is due to the big players waiting for some indications about which way the lawsuit might go. If that's true, the option volatility should start rising as rumors/leaked info starts spreading; this might be a good time for a volatility-spread option play. (Don't put to much faith into that prediction; I just made it up.) In any case, I'm still long and bullish, and waiting for enough spare cash and/or buying power to pick up more. Recently I've been doing July buy-writes 100 shares at a time as I could afford them, since I only have buying power near the peaks, and not the valleys. Since I'm using July calls, I haven't been able to buy anything back (they don't drop much in the valleys) but I'm still locking in some decent profit each time. I'll probably keep doing this for a few more months, unless Creaf takes off for 30 sooner than I expect. Doug.