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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: rocket man who wrote (7785)	6/28/1998 7:09:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Below is a cut and paste of the type of information provided by coveredcalls.com. Stock Option a Details Option$ Stock$ Prem% Volume OI BB&RSI ----- ----- - ------------- ------- -------- ----- ------ ------ ------ MCHM QQGU a C Jul 98 7.5 0.9375 7.40625 12.66 14 269 MCHM How Can You Use It? First, you should be well aware that the high percentage for the option premium means higher risk because of the high volatility in the underlying stock price. Second, as a CCer you should not simply buy any stock because of the high $$$ CC premie potential UNLESS you recognize (thru fundamentals, RSI and BBs) a chart pattern which indicates a buying opportunity. With that said, I think the free web site offers an excellent learning opportunity for the novice and a time saver and source of information for the more experienced CCers. Why? The rate of return listings could decrease your homework time. For example, I may look over the list and note if the stocks are in a particular industry group. A depress industry group spells PUTs and shorting. I can look at the charts and decide if any of them may be profitable because of the chart patterns like double-bottoms, trader's bounce, zig-zag price channels, or high/low RSI due to an excessive price gap or short squeeze. That provides the astute traders with the basis for their applied strategies. In closing, if I already own the stocks I would exploit or protect my position(s). If I'm out hunting and looking for $ prey I will stick to the strategies I already know and have confidence in.