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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: EJ who wrote (7555)	6/5/1998 1:31:00 PM
From: Herm	Respond to of 14162

Alright EJ! You get the BIG Kahuna Award for June 1998. Now my friend! Take your money and cash out! Gravy $ time! The volatility today is extreme and you need to hit and run on those XRAY Puts. The XRAY chart seemed to show a major decline in June. I was a bit surprised it came this early before the dividend record date and earnings release. So, from here I think XRAY will go sideways and then back up a little. The XRAY at the money CCs would have paid off by cushioning the drop. Right now would be the time to cover those CCs and roll out two months and one strike price up from the current selling price. BUT, wait for the trader's bounce next week before another round of CCs. I cashed out of XRAY after a few points of profit and moved on to BTGC. Sold 7 CCs for the July 10s which I may cover at a limit of 1/16s. It does not make sense to wait around for the last 10% of the premie if it will take over 30 days. You can change row out a few months and pickup some of the time value in the CCs. It all depends how long you are in the stock itself. Great hit EJ! Thanks for sharing that information.

To: EJ who wrote (7555)	6/5/1998 9:15:00 PM
From: Andrew Williams	Respond to of 14162

RE: XRAY Puts. Lucky you. Unfortunately, I was not so lucky I still own XRAY. Given XRAY's past I would think that today's drop includes a little over reaction. Therefore, I would consider taking my profit now. If history repeats itself (like when I worked there in 1995) the write off probably includes a couple other skeletons that will ensure they meet the numbers in the next couple of quarters.

To: EJ who wrote (7555)	6/29/1998 1:16:00 AM
From: EJ	Respond to of 14162

Herm, I finally sold all my XRAY puts... made over $15,000 by following up on statements you made on this thread. Now it's time for a little quid pro quo. A stock that I'm bullish on right now is CD ... it also happens to have nice premiums for the covered call writer in your blood. While I'm long the stock at $19 (and believe it is still very attractive at its current price) I may wait awhile (if ever) before I write calls against it. Anyway, I am simply going to throw it out there for you to chew on...I believe you will do well months and years down the road with this stock...and it has nice premiums to boot. EJA