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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: mc who wrote (7533)	5/29/1998 11:39:00 AM
From: RayV	Respond to of 14162

Gary Coincidently, I'm looking at SESI today. Anyone think a buy here and sell the july 10 calls is a good idea? I'd be tempted to just be called out in your case. It seems to swing around 10, and if it goes higher, there will probably be opportunities at the 12.5 level. Of course, I have only been looking at this one for the last few months. Ray

To: mc who wrote (7533)	5/29/1998 11:50:00 AM
From: Greg Higgins	Read Replies (1) \| Respond to of 14162

Gary McBride writes: ...SESI...nut of 7.30 ... Jun 10 calls... trading 9 7/8 x 10 I summarized, hope no one minds. I think it's way too early to make this kind of decision. As long as being called out is profitable (and in your case it's very profitable) you should let it ride. There are 10 times as many 12.5 calls as there are 10 calls for your stock, so it's not automatic that the MarketMakers will do anything to keep the stock down, but have a little patience. Volume is still light so it may turn down again.

To: mc who wrote (7533)	5/29/1998 3:58:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Gary, I agree with the other responses! I would just sit back and let your existing CC round play out. You are in the money no matter what! Nobody loses money by making a profit. :-) Anything could happen between now and the third week in June. TECHNICAL CHART INDICATORS: Very nice rebound off the lower Bollinger Band (BB) and RSI was right in sync with BBs. SESI also bounced off the 200-day moving average recently. So, SESI has a long way to go to overcome that overhead $ resistance at $10.00. On three occasions SESI reached $10. Hence, there are plenty of potential shareholders that will be tempted to dump SESI if and when the prices reaches $10 for the forth time in six months. The only "planned event (news)" that would push SESI upwards is the upcoming earnings release date around July 29, 1998. That won't help much in June when the MMs will be doing their rock n roll shakeout for weak hands. bigcharts.com P/E VALUE: With a 20% annual growth rate, SESI will have to pull something out of the hat this quarter to warrant the current premium price. NASDAQ: (SESI : $9 11/16) $283 million Market Cap at May 29, 1998 Trades at a 17% Premium PE Multiple of 15.9 X, vs. the 13.6 X average multiple at which the Drilling & Marine Supply SubIndustry is priced.