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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: JoAnn McCracken who wrote (7182)	3/27/1998 5:37:00 PM
From: Herm	Respond to of 14162

Wow JoAnn, That's a 33%+ drop today for INFS! Hummm, the Feb. 27, 1998 2-1 split must have really increased the liquidity beyond the ability to generate more profits. I'm assuming you had no CCs out there? If so, you may need to cover, roll out a few months, and perhaps one strike price down. NASDAQ: (INFS : $9 13/32) $217 million Market Cap at March 27, 1998 Trades at a 61% Discount PE Multiple of 8.5 X, vs. the 21.8 X average multiple at which the Office Equipment SubIndustry is priced. INFS is leveling off the down trend. The announcement of a below expectation earnings warning did not help the stock today! webbindustries.com You could write CCs and wait it out. Here is what you can bring into the pot in the meantime. If INFS has a bad earnings report this stock will be out of favor for at least the next three months. webbindustries.com You can grab some premie money right now and let the time value in the CC erode away before you either cover and move on the sidelines or roll up a strike price or two. You could short against the box to prevent further price erosion (loss) and freezing this point. This would be a defensive play. 207.95.154.130