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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: Herm who wrote (7836)	7/6/1998 10:04:00 PM
From: Ken Hawn	Read Replies (1) \| Respond to of 14162

Herm....I've been lurking on your thread for some time. I have a question for you. If I am understanding your philosophy correctly an option should be written when it is at the upper limit of the Bollinger Band and has an R.S.I of over 70. I went down the list of August picks on your webpage and checked out the first 10. It looked like a good 80% did not meet your criteria. I'm not picking at you, but I am curious if this is a common situation or not. If a stock is in the middle of the BB and the R.S.I. is a little low wouldn't it be a fairly safe bet that the stock is going to hold steady until expiration? I understand that ideally it would be perferable for the stock to rise enough to give some capital gain, but making the money on the premium is better than nothing. I would like your feedback. Ken