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Non-Tech : Southwest Airlines (LUV)) -- Ignore unavailable to you. Want to Upgrade?

To: Bootz who wrote (190)	5/17/1998 9:43:00 PM
From: Herm	Respond to of 299

Hi Everyone! I was asked to look up LUV for a friend who is getting a divorce settlement payment partly in shares from LUV. In doing my research I came across insider trading or dumping of shares since early April. That may account for some of the weakness. Not to mention, oil prices have just about hit the bottom price. So, the windfall profits for the airlines is just about over. Now, they need to get into gear! I would be amazed if you guys and gals have not been writing covered calls (CCs) with LUV to enhance your profits. Plenty of open interest for several strike prices and LEAPs are also sold. CCs are a great way to protect your downside. LUV has attempted at least three times to reach the previous new recent high. The pull back was to be expected. bigcharts.com Writing in the money covered calls would have been a turkey shoot and easy premies to lower your net cost basis (nut). You can learn more about covered calls on a forum I chair on SI. Subject 12574 Herm