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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: JimmyC who wrote (7169)	3/25/1998 8:28:00 AM
From: drsvelte	Respond to of 14162

<<What do you think of ZONA>> I recommend that you look real close at this one before you pull the trigger. Check the ZONA thread here on SI.

To: JimmyC who wrote (7169)	3/25/1998 8:32:00 PM
From: Ali Husain	Respond to of 14162

Hi Jimmy: I am also in JBIL and trying to repair it. I got in before the earnings at $40 and sold Mar45c at $1.00 then the stock took a major dip. I pocketed the $1 for Mar45c which reduced my cost to $39. I sold Jun40c today at $2 1/16 (by the way I sold both of my calls at much lower price than I should have), now my cost is reduced to $37. If I get called out by Jun I will make some money in this stock and if I don't get called out I will sell more calls to continue averaging down. I personally like the stock based on fundamentals and multiples. I know it is being manipulated. The option premiums are very attractive which makes the repair job easier. From this point on I will be happy if stock goes to $35+ levels and stay there, I will continue to make money in selling CC on this baby. Ali Husain

To: JimmyC who wrote (7169)	3/25/1998 11:56:00 PM
From: EJ	Respond to of 14162

Jimmy, Just a thought on "repair"... and your question of whether you should try to make some money back in another position. I don't think it's necessary to be focused on showing that you made money on each stock that you started writing calls on. If you have a position that went south, the question simply becomes what trade is out there that will produce the return you're trying to achieve. Consistently writing a call on a stock that is has declined significantly in price may only allow you to recover a few percentage points off your investment (eg, $1 on a $40 stock). This may continue for many months. When, on the other hand you could have taken the same amount of capital and moved on to a better performing (hopefully) stock and received better premiums, etc... You can waste several months grinding out a few bucks on a dog. It's the decisions that make it interesting, isn't it? EJA