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.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: dazzled who wrote (7483)	5/23/1998 3:11:00 PM
From: Greg Higgins	Read Replies (1) \| Respond to of 14162

Dazzled writes: Thus, i have taken in about 2100 in premies since 3/23 on initial cost of 11,000. or in another way of looking at it, the 'nut' or breakeven is now about $18 per share with SMOD still hanging around the 21-22 area. Anyone have suggestions/comments? Perhaps you haven't seen the news. SMOD closed at $13 7/8 yesterday, after hitting an intraday and 52 week low of 13 1/8. Come Tuesday you'll find UYQ 12.50, 15 and 17.50 options. Doug's site will give you a repair strategy for buying 12.50's and selling 15's or so. I'll suggest looking into selling the Jan 99 12.50 PUTS as a good way of averaging down, if you otherwise still like the company.

To: dazzled who wrote (7483)	5/24/1998 8:45:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Howdy Dazzled, Wow! The SMOD price drop would sure dazzle me. Lucky for us we have tools to get back our money over time. Doug's web site was down this morning, so, I was not able to put together some recovery spreads. I will follow up this afternoon. Let's look at the fundamentals. P/E Values: NASDAQ: (SMOD : $13 7/8) $554 million Market Cap at May 22, 1998 Trades at a 57% Discount PE Multiple of 10.1 X, vs. the 23.2 X average multiple at which the Semiconductors SubIndustry is priced. CHART STORY: SMOD has broken below the 50-day and 200-day moving average. The RSI is at an all time low reading of 14 which is really really an oversold condition. I would expect a dead cat bounce (trader's bounce) next week as the PUTs and shorts start taking profits. SMOD's price should recover somewhat. If you are going to keep the stock then go deep into the money two or more months to grab as large CC premies as you can! I will discuss the recovery spread this afternoon. This is going to be a six to nine month recovery process if you decide to hold on to this stock. That is something to think about. Yes, with time I think you can walk away with a profit. Alot depends how much of your portfolio is tied up in SMOD. If you other funds it may be easier to generate profit else where in order to recover your give backs. bigcharts.com