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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: dazzled who wrote (7487)	5/24/1998 7:32:00 PM
From: Rob Hodges	Read Replies (1) \| Respond to of 14162

I recently tried my first covered call. I'ld like you guys to take a look at the stock because I want to get your opinion on my trade, and because I think it's a good stock for other people to write CC's on. RADAF (Radica Games Lmtd.) Sells hand held computer games. It has moved from 4 to 20 over the past year, but has been in a trading range between 19 and 20 for the last three months. Low volume. Earnings are coming out on June 8th and reports are that they will be up 300% over same quarter last year. I bought at 19 1/2 and sold June 20's at 1 3/8. So as Herm taught us my calculated NUT is 18.39. I kinda hope it stays in it's trading range, so that I don't get called out, because I would like to write July or Aug calls as well. On the other hand if I do get called out I'll make a nice profit, and since this is my first attempt at CC's I'll be happy. I expect that as earnings time approaches the stock will go over twenty and possibly hit a new high. It has hit 20 5/8 a few times, but hasn't broken through. Once it does I think it will rapidly go up over 25. Please take a look at RADAF and give me your opinion's. Thanks. Rob

To: dazzled who wrote (7487)	5/24/1998 11:13:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

SMOD moved down so fast the lower option strike prices have not been posted. The PUTs jumped some 7 1/2+ in one day. You can bet people will grab their money and run on Tuesday. DESCRIPTION LAST BID ASK CHG HIGH LOW VOL OI SYM ------------- ------- ------- ------- ------ ------- ------- ------ ----- ----- C JUN98 20.0 0.063 0.000 0.188 -2.812 0.188 0.063 300 262 UYQFD C JUN98 22.5 0.063 0.000 0.063 -1.562 0.063 0.063 47 1006 UYQFX C JUN98 25.0 0.063 0.000 0.063 -0.750 0.063 0.063 34 1294 UYQFE C JUN98 30.0 0.063 0.000 0.063 -0.187 0.063 0.063 26 532 UYQFF C JUL98 20.0 0.500 0.250 0.438 -2.375 0.500 0.250 97 548 UYQGD C JUL98 22.5 1.875 0.125 0.250 0.000 0.000 0.000 0 299 UYQGX C JUL98 25.0 0.125 0.000 0.188 -1.063 0.125 0.063 72 552 UYQGE C JUL98 27.5 0.063 0.000 0.125 -0.500 0.250 0.063 11 174 UYQGY C JUL98 30.0 0.063 0.000 0.063 -0.375 0.063 0.063 18 419 UYQGF C JUL98 32.5 0.063 0.000 0.125 -0.437 0.063 0.063 4 235 UYQGZ C JUL98 35.0 0.125 0.000 0.125 0.000 0.000 0.000 0 378 UYQGG C JUL98 40.0 0.500 0.000 0.125 0.000 0.000 0.000 0 104 UYQGH C OCT98 20.0 1.000 0.875 0.938 -3.250 1.000 0.625 369 253 UYQJD C OCT98 22.5 0.625 0.438 0.625 -2.750 0.625 0.625 10 173 UYQJX C OCT98 25.0 0.313 0.313 0.500 -2.062 0.313 0.313 10 268 UYQJE C OCT98 30.0 1.063 0.125 0.313 0.000 0.000 0.000 0 178 UYQJF C OCT98 35.0 1.375 0.000 0.188 0.000 0.000 0.000 0 18 UYQJG C OCT98 40.0 0.813 0.000 0.188 0.000 0.000 0.000 0 45 UYQJH C JAN99 20.0 1.500 1.250 1.500 +0.125 1.500 1.188 81 0 UYQAD C JAN99 22.5 0.000 0.000 0.000 0.000 0.000 0.000 0 0 UYQAX C JAN99 25.0 0.813 0.625 0.875 0.000 0.813 0.813 5 0 UYQAE C JAN99 30.0 0.313 0.313 0.563 -1.312 0.375 0.313 20 20 UYQAF