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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: Herm who wrote (7378)	4/30/1998 11:51:00 AM
From: JOCKO	Read Replies (1) \| Respond to of 14162

Herm wrote you e-mail last week did you get it and not have time to respond,or did mail go to someone else? Did not want to clutter up this thread with off topic sbj. If you did not get it please post me on this thread. Thanks Jocko

To: Herm who wrote (7378)	4/30/1998 6:06:00 PM
From: rkf	Read Replies (1) \| Respond to of 14162

Herm, thanks as always - good insight, and to think WADE is worth $450M for telling people to buy calls and cash them in when they triple over night. Kent

To: Herm who wrote (7378)	4/30/1998 6:13:00 PM
From: Herm	Respond to of 14162

NOTE - The August 30 XRAY PUTs are selling for around 3/8s at this time. Imagine loading up with 20 of those babies on 200 shares. That's $750 plus commission. If XRAY drops to $31 from the current $32 7/8s those PUTs would appreciation to around 7/8s and your $750 investment would be worth $1,750 minus commissions. As XRAY approaches $35+ (the old high) those Aug. 30s PUTs will drop in price even more to perhaps 1/8s. So, CCing deep in the money at that point would provide plenty of premies to load up on the puts. Again, you would have to believe the XRAY will correct after the new high is made and that the dividend payout will be the signal for profit taking. Check out the charts for last June! XRAY corrected right around the dividend payout. chart1.bigcharts.com Any comments out there?

To: Herm who wrote (7378)	5/1/1998 9:12:00 AM
From: rkf	Read Replies (1) \| Respond to of 14162

Herm, haven't checked prices today - but lets say I buy 100 shares of XRAY at market today - Fri. 1)Is it better to immediately buy the puts two strike prices down - or let the stock run up a bit, or 2) Lets say the stock moves sideways until the dividend date - should I hang on until upward movement, then perform a deep in the $$ CC a few months out, and use that dough for put sideshow -which at that time would be cheaper, right$. Sometimes, my mistakes with CCing seeom to be having the wrong strategy. Kent

To: Herm who wrote (7378)	6/5/1998 10:44:00 AM
From: EJ	Read Replies (3) \| Respond to of 14162

HERM - This is a THANK YOU note. I believe you had this message as well as another message on this thread where you indicated that buying puts on XRAY may pay off. Well, I took the leap several days back and bot 10 Aug 30 Puts for 3/8 and 20 Nov 30 Puts for 7/16. As I write, these are both trading north of $5! I simply would not have "found" this trade if it weren't for your statement on this thread. If you have any food for thought regarding the timing of the sale of these puts, please feel free to comment. I'm sure I'll take a little off the table today. Cordially, EJA