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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: Tom K. who wrote (7740)	6/24/1998 7:48:00 AM
From: Herm	Respond to of 14162

Hello Tom, You should never do something that you are not comfortable with. A moderately aggressive CCer (that closely follows the charts) would CC a few months out and at a lower strike price in the money. Reason? The extra large premies will sit in your account and make your stomach feel a whole lot better. Eventually, you would have to cover when the stock bottoms at a nice discount. The large premies you collect provide the resources to buy PUTs to turbocharge your profits. I will be coming out with some information on reading open interest levels to better gauge the direction of a stock price. It was very interesting reading.

To: Tom K. who wrote (7740)	6/27/1998 12:54:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hi Everybody! I covered my BTGC July 10s CCs for 1/16 this week. Reason? BTGC was hugging the lower Bollinger Band (BB) and the RSI indicator bottomed but thus providing a signal that BTGC was due to reverse. I will now what until the price increases in order to sell another round of CCs. I will determine the CC month and strike price when I have more information. Note, the earnings report is due out July 13, 1998. So, I will try to determine the whisper numbers for BTGC. Notice! below that June 23, 1998 was the signal and a high volume day. A volume increase of more than 10%-25% is usually common. On Friday, BTGC increase a whopping +7.14% in one day! BTGC Price Movements This Week Date Close Change Day High Low Volume Jun 26 7 1/2 + 1/2 +7.14% 7 9/16 7 321,400 Jun 25 7 - 3/16 -2.61% 7 5/16 7 326,600 Jun 24 7 3/16 - 1/8 -1.71% 7 3/8 7 317,700 RSI----->Jun 23 7 5/16 + 1/16 +0.86% 7 3/8 7 505,300 BOTTOMED Jun 22 7 1/4 - 1/4 -3.33% 7 9/16 7 1/16 394,200 Take a look at the chart to see how the BB and RSI work together to give you a valuable timing tool for buying/selling PUTs, CALLs and CCing Writing! Keep in mind that EVERY stock has a unique pattern of behavior when it reaches the BBs. Some ride up the upper bands and then pullback a few days later. Others, bounce on the same day! Just look at the past chart history to tell the full story for the stock you are looking at. You need to know the trading patterns for YOUR stock(s) in order to become a CC options $$ killer trader. It is not luck and you don't have to be a Warren Buffet or Peter Lynch to get piece of the stock market bull market. bigcharts.com