Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : APCO Automobile Protection Company -- Ignore unavailable to you. Want to Upgrade?

To: Tai Jin who wrote (2075)	5/2/1998 4:24:00 PM
From: Magnatizer	Respond to of 3351

Tai APCO is near the bottom of its channel. Not much more to give. Maybe able to get it at 1/8th cheaper but with APCO explosiveness potential probably not the best plan. If I were to write CC against I would wait for the 15 level to be attained. May want to figure the max. pain on it. Max. pain has something to do with the point where the MM will make the most out of the calls and puts on expiration date. The MM will push the stock in that direction. Ben Antalists(sp?) on the P&F thread does a graph of SUNW every month, he may be able to tell how it is figured. ht david BTW I agree with the CC strategy. Just make sure you write out of the money calls on a stock like APCO. Also try to write them for the next month out. this gives the writer a chance to write more calls against their stock and also gives the stock less time to run past strike price. Very good strategy in a market that is trading sideways or declining. Bad strategy in a bullish uptrending market. In that type of market it is better to be the buyer of the calls. IMO