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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: Ken Hawn who wrote (7847)	7/7/1998 7:47:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hello Again Ken, CCing while a stock is in the middle of the range can be tricky. But, yes you are now understanding how to use the technicals to gauge your strike price and expiration month. Each stock and the relative news events date like earnings will determine the best CC to consider when you are in the middle of the range.

To: Ken Hawn who wrote (7847)	7/7/1998 9:38:00 PM
From: robert weisberg	Respond to of 14162

I have not seen any comments on those that comment on the success of buy some cc with good premiums that have a high RSI in the Bollinger bands. In other words how good it works or if it is just a research tool some use with cc. Robert

To: Ken Hawn who wrote (7847)	7/8/1998 5:21:00 PM
From: Herm	Respond to of 14162

Hi Everyone! I'm posting the update on BTGC. The value of knowing the BB and RSI as a aid to know when to sell CCs or hold off CCing can't be stressed more! The more you exploit the stock price moves with CCs, PUTs and/or CALLs as a side show, or spreads, the more you will make over and over again with little up/dow or sideway price movements. Let the trend be your friend! There she goes! BTGC Change +15/32 (+7.14%) BTGC bounced off the lower Bollinger Band as it has several times before in exactly the same trading pattern. That is, a sharp downward spike followed by a total reversal after that. Overall, BTGC volume was very good. It included a single 100,000 (buy) block trade @ $7.00 at 3:55 pm. That's a whoppin $700,000 in one trade alone. You don't see that size purchase without good EPS projections. The BTGC RSI has bottomed out below 30 indicating a much oversold condition. Plus, BTGC is once again above the $7.00 mark. The next test will come around $9.00. bigcharts.com SHORT SQUEEZE POTENTIAL! BTGC volume has been very low over the past few months. In fact, BTGC ranks #17 among the lowest volume trading vs. the size of the short interest which is MASSIVE! A good earnings report next week could ignite BTGC upwards! I'm still wondering who picked up deep in the money 400 July 12 1/2 PUTs @ $5 1/4 last week. Seems like a crazy unless they anticipate a blow out in earnings! There is 18 days worth of trading to cover the short position. viwes.com Month Shares Short Avg Daily Volume Ratio* 06/98 4,602,679 247,841 18.57 05/98 4,971,531 649,642 7.65 04/98 5,046,068 405,508 12.44 03/98 5,581,271 783,743 7.12 * Ratio = Shares Short / Avg Daily Volume; it may be used as a rough measure of days to cover