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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: Terry Maynard who wrote (7474)	5/20/1998 9:56:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hi Terry, Several ways you can play NOVL. You could buy the stock or the LEAPs for Jan. 2000 which would give you plenty of time to CC say three two month rounds for some easy bucks. ------------------------------------------------ NOVL RECOVERY CC SPREADS for 500 shares or 5 LEAPs: Series Long Short Entry Credit Total Gain JAN99 Buy Calls 5 @ 15.0 Sell 10 @ 20.0 ($249.50) $6750.50 Outperforms Stock Ownership in Price Range $10.50 - $24.50 JAN00 Buy Calls 5 @ 10.0 Sell 10 @ 15.0 ($62.50) $4437.50 Outperforms Stock Ownership in Price Range $10.8750 - $19.8750 JAN99 Buy Calls 5 @ 12.5 Sell 10 @ 15.0 ($156.50) $3093.50 Outperforms Stock Ownership in Price Range $10.687 - $17.187 JAN99 Buy Calls 5 @ 10.0 Sell 10 @ 12.5 $156.50 $2156.50 Outperforms Stock Ownership in Price Range $0 - $15.313 NOV98 Buy Calls 5 @ 10.0 Sell 10 @ 12.5 ($62.00) $1938.00 Outperforms Stock Ownership in Price Range $10.8760 - $14.8760 AUG98 Buy Calls 5 @ 10.0 Sell 10 @ 12.5 ($187.00) $1813.00 Outperforms Stock Ownership in Price Range $10.6260 - $14.6260 JAN00 Buy Calls 5 @ 7.5 Sell 10 @ 10.0 $1000.00 $1750.00 Outperforms Stock Ownership in Price Range $0 - $14.5000 JAN99 Buy Calls 5 @ 7.5 Sell 10 @ 10.0 $313.00 $1063.00 Outperforms Stock Ownership in Price Range $0 - $13.1260 NOV98 Buy Calls 5 @ 7.5 Sell 10 @ 10.0 $125.00 $875.00 Outperforms Stock Ownership in Price Range $0 - $12.7500 AUG98 Buy Calls 5 @ 7.5 Sell 10 @ 10.0 $0.00 $750.00 Outperforms Stock Ownership in Price Range $0 - $12.5000 AUG98 Buy Calls 5 @ 5.0 Sell 10 @ 7.5 $562.50 $62.50 Outperforms Stock Ownership in Price Range $0 - $11.1250 Recovery CC Option Spreads for BS for 500 shares: Series Long Short EntryCredit Total Gain JUN98 Buy Calls 5 @ 15.0 Sell 10 @ 18.1 $1594.00 $6694.00 Outperforms Stock Ownership in Price Range $0 - $24.3880 JUN98 Buy Calls 5 @ 17.5 Sell 10 @ 18.1 $1719.00 $5569.00 Outperforms Stock Ownership in Price Range $0 - $22.1380 OCT98 Buy Calls 5 @ 15.0 Sell 10 @ 17.5 $0.50 $4500.50 Outperforms Stock Ownership in Price Range $0 - $20.0010 JAN99 Buy Calls 5 @ 15.0 Sell 10 @ 17.5 ($62.00) $4438.00 Outperforms Stock Ownership in Price Range $10.8760 - $19.8760 JAN99 Buy Calls 5 @ 12.5 Sell 10 @ 15.0 $62.50 $3312.50 Outperforms Stock Ownership in Price Range $0 - $17.6250 OCT98 Buy Calls 5 @ 10.0 Sell 10 @ 12.5 $250.00 $2250.00 Outperforms Stock Ownership in Price Range $0 - $15.5000 JUL98 Buy Calls 5 @ 10.0 Sell 10 @ 12.5 ($187.00) $1813.00 Outperforms Stock Ownership in Price Range $10.6260 - $14.6260 OCT98 Buy Calls 5 @ 7.5 Sell 10 @ 10.0 $750.00 $1500.00 Outperforms Stock Ownership in Price Range $0 - $14.0000 JUL98 Buy Calls 5 @ 7.5 Sell 10 @ 10.0 $562.50 $1312.50 Outperforms Stock Ownership in Price Range $0 - $13.6250 NYSE: (BS : $14 1/4) (BSp : $54 1/2) (BSpB : $28 5/16) $1,604 million Market Cap at May 20, 1998 Ranks 279th in the Fortune 500 on Revenue & 246th on Profit. Employs 17,500. Trades at a 18% Discount PE Multiple of 9.8 X, vs. the 12.0 X average multiple at which the Steel SubIndustry is priced.