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Technology Stocks : Trading TAVA -- Ignore unavailable to you. Want to Upgrade?


To: S.C. Barnard who wrote (510)7/8/1998 9:29:00 AM
From: fma  Read Replies (1) | Respond to of 655
 
All -Could someone give me a primer on covered calls. Please use the following scenario. Tava is at 10, the expectation is that it will be at 11 within 20 days. You own 10k shares and are overwriting.

I know that you are looking for a 10 percent premium ideally, out of money and out of margin. Lets use November 12s. Ok, here's the question, what happens:
1) Tava falls to 9 tomorrow, vs. September.
2) Tava rises to 11 tomorrow, vs. September
3) How do you calculate downside protection limits?

Thanks, fma



To: S.C. Barnard who wrote (510)7/8/1998 5:37:00 PM
From: Tim J. Flick  Read Replies (1) | Respond to of 655
 
Same pattern!!
Tava gaps up on seemingly good announcement. Next day sells off with no follow through or volume. I have moved to the sidelines on Tava. I am a trader, and I hate the action in the stock. Will be back only if chart and volume improve. Kea is screaming and Tava trades at a multi-month low yesterday. You never ask why in this game just play the hand. Good luck to all longs!!!!